GBP/USD: Risks remain skewed to further attempts to the 1.2000 key support – ING

Economists at ING analyze GBP outlook which is almost entirely driven by external dynamics.

Recent EUR/GBP rally to the 0.8700 handle may have run out of steam

Risks remain skewed to further attempts to the 1.2000 key support in the short term in Cable as the Dollar still appears to have room to catch up with its better rate profile. 

The recent EUR/GBP rally to the 0.8700 handle may have run out of steam after the ECB meeting, even though we favour longer-term bullish positions on the pair.