Bank of America FX Strategy Research notes that GBP has been broadly lower in the aftermath of the BoE decision with some of the main pairs having failed to break through resistance in recent weeks.
Looking ahead, with a key event risk now out of the way, the focus for FX markets shifts to UK data-watching with CPI and retail sales both released next week.
"UK data surprises continue to mean-revert downwards. With positioning now much cleaner than has been in recent weeks, the risks to GBP are more symmetric," BofAML adds.
"Heading into a busy schedule for data which is showing further signs of weakness and the June 8th General Elections, we believe that GBP faces near-term headwinds and our bias would be to sell on rallies in the coming weeks," BofAML recommends.
GBP/USD is trading circa 1.2875 as of writing.
Source: Bank of America Merrill Lynch Rates and Currencies ResearchOriginal Article
