The pound’s sudden surge Thursday made one thing clear: after an almost 9% tumble from the year’s highs, it may now be close to a floor where value hunters are waiting.

In a market that’s overwhelmingly short the currency, a further decline of about 4% may tempt buyers back in, according to some strategists. Such a drop would take it to levels unseen since 1985.

For State Street Bank and Union Bancaire Privee, it’s not yet time to make a bet on a pound recovery but further declines into the Oct. 31 Brexit deadline could add to its appeal. Strategists at both institutions point to $1.17 as a level that looks attractive to enter long positions, although that would depend on their verdict on the extent of the bad news behind the drop..

“It’s been an incredibly popular trade to sell sterling -- at a certain point, if everybody sold sterling, who else is there left to sell?” Monique Wong, a senior portfolio manager at Coutts & Co., said.