If you have decided to hold onto some GBP cash (as opposed to stocks) as part of your investment strategy for the medium/long term (1-5 years), would you keep it as GBP itself, or would you put that into something else that is easy to liquidate when the need arises? Would it be wise to put it into a ETF that invests mostly into USD denominated govt debt (like XGIG: https://www.hl.co.uk/shares/shares-search-results/x/xtrackers-ii-global-infl-lnk-dr-gbp ), or would it be better to hold on to the GBP cash, in the hope of GBP reaching back to its 'glorious' 1.5-1.6 USD trading range (as opposed to the 1.2-1.3 range it is trading in now) ?
I couldn't say for sure whether this post goes into Forex or Fixed Income, so I had to just choose one.
That is not a strategy for a "GBP Cash position". That is a "risk on" position with inflation adjusted debt denominated in many other currencies. You have Currency, Duration and Sovereign credit risks. To keep classifying it as cash, you would naturally invest in guaranteed income producing products with less than 1 year maturity denominated in your home currency. These are the most common type of products found in any developed banking system. CD time deposit, Money market and Savings, Treasury bills. The graphic shows the country exposure of your chosen product. Greece, Italy and the US are the worst risks.