Analysts at Nomura noted further GBP pain, ECB taper rumours and yen weakness.
"GBP has come into the spotlight once again this week, with Prime Minister Theresa May announcing that she plans to trigger Article 50 by “no later than the end of March next year”, sending GBP over 2.5% lower against the dollar.
Once the market adjusts to the “Hard Brexit” realisation at some point there will be an opportunity to be long GBP, but for now near-term GBP momentum is weak for good reason as investor confidence is weak with the currency lower - Gilt yields higher is a good example of this.
We expect this fall to continue down to 1.25 in GBP/USD and up to 0.90 in EUR/GBP in the near term and will readdress the situation there."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.