The big event this week for GBP FX is the Bank of England meeting on Thursday, Danske Bank's FX analyst Jens Nærvig Pedersen reports. 

German politics and global factors are driving EUR/GBP movements

"We expect an unchanged decision, keeping the Bank Rate at 4.50%. We expect the market reaction to be rather muted but look out for any guidance on altering the gradual approach to cutting interest rates." 

"Our bias is for a swifter cutting cycle than currently priced by markets, which could weigh on GBP FX. For now, German politics and global factors are the main driving force for EUR/GBP. We stay bearish."