GBP/USD: Strong Dollar to keep Cable not far from the 1.2050/2100 support region – ING

Sterling is trading slightly on the soft side ahead of Thursday's Bank of England (BoE) policy meeting. Economists at ING analyze GBP outlook.

EUR/GBP may struggle to hold gains over 0.8700

We think a 6-3 vote for unchanged rates should not unduly hit the Pound. However, it seems investors are taking a slightly dimmer view of the GBP.

A strong Dollar should probably keep GBP/USD not far from the 1.2050/2100 support region. 

Soft Eurozone data this week suggests EUR/GBP may struggle to hold gains over 0.8700.