"The GBP has been broadly range-bound of late, mainly on the back of stabilising central bank monetary policy expectations. Although the BoE left all options regarding lower rates as soon as this year open, improving data as for instance reflected in better than expected retail sales suggests that the central bank is in a position to wait and see for longer. This makes sense considering that conditions may turn more unstable as soon as Brexit negotiations actually start next year.

The GBP should remain broadly stable next week, especially as no top tier data is scheduled to be released.

When it comes to positioning it remains less elevated and close to levels of when the EU referendum was held. Nevertheless,should GBP lose further downside momentum it cannot be excluded that long-term shorts will be taken off.

Hence, scope of cannot be excluded".

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