GBP is near multi-decade lows and the risk of a major decline is limited, says NatWest Markets as it assesses the currency's prospects for 2023.

The British Pound ends November on a solid footing against the Dollar and Euro but there is a distinct uncertainty amongst analysts as to how the coming month of December will play out.

GBP/NZD starts the new week higher amidst a selloff Asian and Australian currencies linked to the weekend developments in China, but the prospect of a material advance in the pair remains limited.

GBP/AUD has been edging higher for a number of weeks and could extend the advance if global sentiment linked to China deteriorates further.

The Pound to Dollar exchange rate has reversed more than one half of this year's decline but will now run the risk of a corrective setback that could pull it toward 1.20 or perhaps even back below there over the coming days. 

The Pound to Canadian Dollar exchange rate outlook has improved further in recent trade and Sterling could now have scope to reach some of its strongest levels since the end of the first quarter after establishing a foothold above the 1.57 handle last week, according to technical analysis from Scotiabank.

HSBC sees USD uptrend ending, upgrades GBP/USD forecasts.

Sterling embarking onto a bumpy road through 2023, energy prices & inflation drive underperformances.

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GBP/USD technicals broadly positive as near-term USD retreat remains intact.

GBP/EUR looking better supported, 200-week moving average forms main technical roadblock.

The Pound has rallied to a new three-month best against the Dollar as the major unwind of the U.S. currency sparked by last week's U.S. inflation data release extends.

Strategists at French bank Crédit Agricole are buying the British Pound against the Euro in the near term, finding the Eurozone's single currency has reached a short-term overvaluation.

GBP/AUD at 1.78 and then 1.80 is possible if the cards fall in Sterling's favour.

GBP/NZD set to release pent-up energy in a busy week for the UK.

GBP/USD in strong comeback, suggests the multi-year low is now in.

GBP/EUR struggling to hold gains, suggesting downside potential for coming days.

USD could be in the final phase of its multi-month rally according to analysts at Capital Economics, although they warn it is still too soon to prepare for the Greenback to roll over and turn trend.

NZD is the best-performing major currency of November, but this outperformance will likely fade over the coming days, offering GBP the chance to consolidate towards the middle of a long-held trading range.

The Pound to Euro exchange rate came undone in heavy losses following November's Bank of England (BoE) interest rate decision but it could be at risk of falling further and back near to early October lows in the days ahead if the market remains leery of Sterling going into Friday's release of UK GDP data. 

"Better, but not good," is how Goldman Sachs analyst Michael Cahill describes the British Pound's prospects in the wake of Rishi Sunak's anointment as Prime Minister.