According to economists at MUFG Bank, there is room for the GBP to extend rebound further in the near-term. They expect the EUR/GBP pair to reach fresh lows.

UK political uncertainty should have limited negative impact on GBP

“We believe there is room for the GBP’s rebound to extend further in the near-term and expect EUR/GBP to hit fresh lows.”

“We do not expect political uncertainty surrounding Boris Johnson’s position as PM to weigh on the GBP. Even if he is replaced as leader following local elections in May, there is unlikely to be an immediate change in government policies.”