GBP/USD: RBC bank believes that pound has potential for a further downward wave

The outlook still favours a further decline in the GBP on the forex in the short term according to the RBC bank:

"After two post-referendum periods of weakness, the GBP is tending to evolve in a range for the last three months or more, caught between movements that are increasingly independent of the USD and EUR. Although still in the minority, a growing number of forecasters have begun to forecast a higher GBP against the EUR and USD by 2017. While recognising certain risks to our long-term targets (1.15 for the GBP/USD and 0.89 for the EUR/GBP), we still believe that the outlook favours another bearish wave. A multitude of factors have acted in support of the GBP over the past few months, but for the future, most factors seem to be more fragile."