Barclays Research discusses GBP outlook sees a scope for GBP to remain supported into next week's BoE policy meeting.

"With the core of the MPC increasingly focused on wage growth and domestic inflation, the BOE is on track for a 50bp hike on 2 February and a hiking cycle that should end up close to market pricing. Accordingly, sterling-supportive near-term hawkish risks seem to have opened up for the first time in a while," Barclays notes.

"Overall, a fairly uniform ToT shock, similarly paced policy tightening, and broadly neutral valuations per our analysis suggest that EURGBP will remain range-bound around our medium-term forecast of 0.87," Barclays adds.

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