GBP/USD to tank towards 1.05/10 – Citi

GBP/USD has dived below 1.15. Economists at Citi turn more bearish in the near-term and expect the pair to plummet towards 1.05/10. 

Stepping up GBP bearish call

“We step up our bearish GBP calls this week, amid deteriorating growth outlook, likely stickier inflation and the BoE hiking into recession.” 

"We call for higher risk premia related to her pre-election promises around fiscal funding, Article 16 and the BoE, and anticipate GBP/USD falling to 1.05/1.10. In the meantime, we keep an eye on the March 2020 low of ~1.1410 as next key support.”