GBP/USD … "extended dip towards 1.25 vs USD cannot be ruled out"

Via ANZ on cable following the BoE rate hike on Thursday

In Brief:

• Sterling failed to rally in response to the Bank of England's decision to raise the bank rate 25bps to 0.75%. An extended dip towards 1.25 vs USD cannot be ruled out, near term. 
• Prime Minister May is keen to build support for the UK government's plan for its future relationship with the EU ahead of key meetings with heads of state in September and, most importantly, the October EU Summit.
• Sterling is fundamentally cheap and the economy is holding up reasonably well. But uncertainty is dominating in thin summer markets. Progress on Brexit is needed to encourage buying interest in the pound, which remains rudderless for now.