One of the reasons behind the decline was a slightly weaker than expected UK manufacturing PMI, but primarily reflecting a reversal of the moves seen over the Christmas/New Year period.

"While these moves were well supported by moves in UK yields, the rise in UK yields itself may be subject to some further correction, as a rate hike is now priced by March 2015, and any weaker data may lead to this being pushed out once again," says a note on the GBP/USD issued by Lloyds Bank Research.

Even so, it seems unlikely that UK data will be weak enough in the near term to push yields to a level that suggests scope for much further correction in GBP, with today’s monetary data slate more likely to show strength.

"Levels below 1.64 in GBP/USD ought to provide good support, while levels above 0.83 in EUR/GBP should be seen as a medium term selling opportunity," say Lloyds.