Economists at ING analyze GBP outlook.
EUR/GBP could retest 0.8700/8710
Sterling is rather a sideshow at the moment given that investors are largely preoccupied with events in the Middle East and whether the Fed is embarking on a somewhat less hawkish narrative.
The difficult international environment should mean that GBP/USD remains biased back to the recent lows near 1.2050.
Any upside surprise to UK price data this week looks more like it will be played out in EUR/GBP – where a retest of 0.8700/8710 could be seen.
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