Sterling bounced back above $1.22 on Wednesday, enjoying a respite after four days of falls that took it to the lowest in 2-1/2 years earlier in the week.
Most analysts see the rebound as temporary however, with more weakness likely if news headlines in coming days are seen as raising the probability of Britain crashing out of the European Union without any transition arrangements in place.
Wednesday's bounce was attributed to some end-month portfolio adjustments, coupled with the fact that a no-deal Brexit is still not fully priced into the currency.
By 14:55 GMT, the pound was up 0.7% at $1.2238 and 0.9% up versus the euro at 90.99 pence. It has risen from a 28-month low of $1.2120, but is now down almost 4% in July against the dollar.
It is also on track for a third straight loss-making month versus the euro.
Source : Reuters