Danske Research discusses GBP outlook and maintains a cautious bias but sees a scope for EUR/GBP to recover towards 0.8750 over the coming weeks.

"EUR/GBP went below 0.86 (to 0.857) on news that Nigel Farage suggests he will be standing down some candidates in the upcoming election. This reduces the perceived risk of yet another indecisive parliament in favour of a conservative," Danske notes. 

"We continue to stay on the cautious side of the GBP and expect continued uncertainty to eventually push EUR/GBP higher, targeting 0.875," Danske adds.