Strategists at Westpac suggested dips towards the 1.42 area could be buying opportunities. Key Quotes “UK rates markets substantially overdone, pricing for lift-off pushed way out to 2018Q3 and a better than even chance of a base rate cut priced in before year's end”. “Yet the data has not been terrible, as the latest decent consumer confidence, BRC retail tracker, Halifax house prices and Markit's manufacturing PMI all attest”. “Brexit risk and global market fragility seem to be the key drivers of GBP weakness and relief from both risks appear very distant. Brexit fever unlikely to break until the referendum (June at the earliest) while a compelling circuit breaker for European banking sector woes might need to await the March 10 ECB meeting and even that may offer very little”. “GBP may cheapen further still but a strong buyer into 1.42 if seen”. For more information, read our latest forex news.