Barclays on GBP, they are looking for further weakness

(Bolding mine)

GBP remains vulnerable to the downside despite the prospect of more parliamentary scrutiny

  • It is notable that a weaker currency is being viewed as a largely positive development by policymakers
  • In a break from tradition, the government has suggested GBP's depreciation is helpful

Forecasts:

  • We continue to forecast GBP-USD at 1.20 at the end of 2016
  • 1.10 at the end of 2017

The Barclays note elaborates with more on the politics of the whole thing ... in brief (and this will not be news if you've been following our two Brexiteers in the UK):

  • UK parliament may have some oversight of the Article 50 process
  • A "full and transparent debate on the government's plan for leaving the EU" and Parliamentary scrutiny of the plan
  • Debate vote is non-binding
  • One-third of UK lawmakers who previously supported "Remain" would now vote to trigger the Brexit process, according to a poll yesterday by Reuters ... this poll suggests many would respect the referendum result whatever their personal political preference.
  • UK court hearing a legal challenge tomorrow that parliament should be allowed to vote on triggering Article 50