Economists at Commerzbank  see limited upside potential for the GBP.

Downside risks

“As the rate hike expectations are already quite high, it is difficult to imagine that it will rise further over the coming weeks – even if the economic data were to improve somewhat. Instead, we see an increased risk of market expectations being disappointed if the economic data comes in weaker.” 

“We see hardly any appreciation potential for Sterling following the positive development over the past months, instead, we see downside risks.”