In view of strategists at Westpac, the sterling remains poised for further downside in the near term. Key Quotes “With the "Brexit" poll date now known and the UK cabinet split, markets will be driven by polls”. “We see very clear risks of GBP below 1.40 and a softer Q4 GDP could certainly see a push towards that level near term”. “However, as was the case in Scotland, cooler heads prevailed on the day. That is our base case and thus see weakness below 1.40 as an opportunity rather than a risk. We maintain a negative bias near term, though weakness beyond 1.38/1.40 would see us flip to a buy”. “Momentum suggesting GBP downside has further to run. 1.40 the next target, and below that 1.3650 then 1.3500”. For more information, read our latest forex news.