Strategists at Citi Group project a bearish outlook for the GBP in the near term, expecting GBP/USD to extend weakness towards 1.0500 levels.

Key quotes

"CitiFX Strategy team stepped up their bearish GBP calls this week, citing the deteriorating growth outlook, likely stickier inflation, and the BoE hiking into recession.”

"CitiFX Strategist calls for higher risk premia related to her pre-election promises around fiscal funding, Article 16 and the BoE, and anticipates GBPUSD falling to 1.05-1.10. In the meantime, we keep an eye on the March 2020 low of -1.1410 as the next key support.”