Goldman Sachs Research sees GBP risks tilted to the downside especially vs USD or AUD.

"We we would stress that Sterling's imprint from political uncertainty over prior months has been much more tactical than fundamental, we still see the risks to the currency as asymmetrically negative from this angle. All told, while Sterling should remain highly levered to any further recovery in global risk sentiment, its energy-importer attributes and the balance of the UK's domestic macro themes still imply more value in the negative side of its distribution," GS notes.

"We think the case for Sterling underperformance is clearer against terms of trade beneficiaries such as USD or AUD for the time being, rather than in crosses that are more sensitive toward UK domestic considerations, such as EUR/GBP," GS adds.