UBS Wealth Management said it remained positive on the British pound and advises adding exposure to sterling as it weakens towards $1.30 to benefit from the possibility of a rally to $1.45 by end-2020.

"Fading dollar demand and a clear path toward a benign free trade agreement with the EU could see sterling rallying to $1.45 by end-2020," Chief Investment Officer Mark Haefele told.

Sterling touched highs above $1.35 after the ruling Conservatives won a clear majority in Dec. 12 elections, but has since fallen back to around $1.31 on fears that Britain could still crash out of the European Union without a trade deal at the end of a transition period in Dec. 2020. Prime Minister Boris Johnson's government has ruled out an extension to the deadline.