According to Neil Mellor, strategist at BNY Mellon
Mellor argues that the pound's recent slide may be tempered by the possibility that UK could stay in the customs union after Brexit as hopes for a softer Brexit could rescue the pound from its current woes.
He attributes the recent decline in the pound to slashed bets on the BOE to hike rates in May.
With regards to Brexit, he says that "the market has shown willingness to support the government's progress on Brexit, but there is little doubt that by dispensing with abstruse and protracted negotiations, such a U-turn would be well-received in the market".
Mellor also notes that there is a chance of a short-term rally in sterling, but remains bearish on the currency in the longer term. His view is a little different from the median forecasts by major banks from Bloomberg data, which is for cable to rise to 1.43 by year-end.
The issue he is highlighting here is the one that's been doing the media rounds recently, citing UK PM May's inner circle that she could be forced to accept staying in the EU customs union. All of this stems from the belief that Parliament will reject her plans to withdraw from the customs union when the matter heads to a vote at the House of Commons.
There is no set date on the vote as of yet, but reports have been saying that it could be as early as next month.
While the vote itself may present the possibility of a softer Brexit - sterling positive - the negative sentiment in the build up to it (highlighting political disarray) is not something that will provide relief for sterling buyers.
