We have long been amongst the most bearish GBP forecasters, but even our caution has not been sufficient. The factors driving sterling depreciation are not particularly new, it is just that the issues have become much more challenging, much faster. Global risk appetite and China's covid outbreaks weigh on the British pound given its status as a small open economy. See GBP/USD at 1.24 in 2Q22, 1.23 in 3Q22, 1.22 in 4Q22, 1.21 in 1Q23 and 1.20 in 2Q23. - HSBC Strategy
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