Uncertainty remains until GE on June 8.
Even after GE , Brexit uncertainty remains.
This is GBP negative in the medium term.
Speculative short positioning is NOT overextended, as was the case a few months ago. There is room for large speculators to build net short GBP positions.
Market sentiment was very GBP positive until recently. Market has been caught off-guard. More room for Sterling downside.
Broken key support levels as in chart. Next target 1.26
Dollar strength may resume from oversold territories heading into NFP. In any case, risk for further USD downside is diminished in the near term.