In the near-term, we expect the GBP momentum to continue and the cross to trade around the 0.86 figure. However, we believe it is only a question of time before the gap between surprise indices closes and markets will scale back on BoE rate hike expectations. 

We do not see the global investment environment nor the relative growth outlook to create a significant divergence between EUR and GBP. We thus expect the cross to move back towards 0.87-0.88 over the coming 12 months.