FX strategists at ING note that GBP has started to underperform a little and it looks as though investors are starting to adjust positions ahead of Thursday's BoE meeting.
"We are in the camp arguing that the BoE will struggle to deliver on all the hawkish pricing packed into the GBP money market curve and that EUR/GBP can correct up to the 0.8500 area on Thursday."
"Given our preference for a stronger dollar this week, that probably means Cable can retest strong support at 1.3570/3600 area - though we suspect how EUR/$ trades at major support at 1.1500 will determine whether Cable needs to fall a lot further."
"Beyond central bank inputs, GBP also has to cope with the UK-France fishing spat, where Macron has delivered a Tuesday deadline for the UK to approve more licenses to the French fleet. Brexit-related tension has not had a major impact on GBP over recent months (it has been hard to identify a political risk premium being built into GBP) and we suspect that will continue to be the case."