The British pound traded sideways over the course of the last week of June against the major currencies.

The British pound slipped to a fresh monthly low as the Bank of England struck a dovish tone for monetary policy.

Much of the sentiment surrounding the British currency continues to be negative.

The sterling fell nearly 1.2 percent against the greenback this week after the Bank of England held rates at 0.5 percent on Thursday.

While the Sterling depreciated 0.51 percent against the U.S. dollar over the course of the week, the end result was less of a function of Sterling weakness or U.S. dollar strength, but rather a global shift away from risk.

The British pound has been somewhat of an anomaly among the major currencies since the beginning of the month.

The pound's losses accelerated on Friday as yet another bout of risk aversion engulfed markets.

The British pound struggled to maintain the rebound from the May low on Friday, and the sterling is certainly at risk of facing additional selling pressures in the following week as currency traders turn their attention to the Bank of England's quarterly inflation report.

Monetary policy expectations are in focus for the British pound, with correlation studies suggesting the influence of relative yield spreads over the exchange rate is at the strongest relative to that of risk sentiment since August of last year.

Much of the sterling's price action in the coming days will be determined by market sentiment on the US dollar.