Pound traders will be looking for fresh catalysts after a rally in the run-up to Andy Burnham's expected move into 10 Downing Street, according to Deutsche Bank AG's George Saravelos.

The rally has been driven by market anticipation of Burnham's potential premiership, with his rhetoric providing support for sterling. Saravelos notes that the currency's recent gains reflect optimism about policy direction under a Burnham-led government.

However, with the move largely priced in, attention shifts to concrete policy announcements and economic data. Traders await details on fiscal plans, Bank of England coordination, and Brexit negotiation stance that could provide the next directional impetus for GBP.

Deutsche Bank's analysis suggests the pound's trajectory will depend on whether Burnham's administration delivers on market-friendly rhetoric or introduces uncertainty. The bank maintains a cautious stance, emphasizing the need for fresh catalysts beyond political transition.