LONDON (Reuters) – Buying sterling is not advisable because of Brexit uncertainty, UBS Wealth Management said on Monday, adding that hedging pound exposure over the next three months is one way to avoid market volatility.

While the agreement over a deal could lift the pound to as much as $1.40, “in the case of a cliff-edge Brexit, a lower limit should be around $1.15 given sterling’s already cheap valuation,” UBS analysts said in a note.

The pound GBP=D3 was trading a quarter of a percent down at $1.2838 on Monday before Prime Minister Theresa May’s statement in parliament where she will outline her plans to break a Brexit deal deadlock.

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