Sterling will pare recent gains in coming weeks and has little chance of returning to January's 16-month dollar high given the Bank of England is likely to print more money to support the moribund economy, a Reuters poll found.
Britain avoided a triple-dip recession in the first three months of the year but continued weak data has failed to dispel expectations for more policy easing from the central bank. The United States economy, by contrast, has fared better, which is driving the dollar's relative strength to the pound.
Sterling hit $1.638 at the start of the year but had nose-dived to a near-three year low of $1.483 by mid-March. It was trading around $1.54 earlier on Wednesday.
According to the poll of more than 60 strategists taken this week a pound will get $1.53 in a month and then only $1.49 in six and 12 months. The longer-term forecasts are virtually unchanged from last month.
A wide range of forecasts in the poll for a year's time highlighted market uncertainty, swinging from $1.30 to $1.63, although only two of 63 strategists saw it breaking back above $1.60.
Sterling hit a three month high against the euro late last month on rising expectations for an interest rate cut from the European Central Bank before retreating. But it rose against the euro last week after the ECB cut its main interest rate to a new record low of 0.5 percent.