BofA analysts advise hedging GBP exposure in May due to historically weak seasonality and rising political uncertainty from UK elections.
April's GBP strength stemmed from strong UK data, widening rate differentials, and repatriation of overseas revenues for dividend payments.
Technical analysis shows GBP/USD bearish, 50‑day SMA crossing below 200‑day SMA, resistance at 1.36, support at 1.3414 and 1.3381.
Historically, GBP/USD is the weakest G10 pair in May, underperforming 69% of the time by an average 0.57% decline.