FXStreet reports that economists at ING expect a marginal upside potential for the sterling, as the Bank of England (BoE) is unlikely to turn more hawkish.

“We don’t expect any new guidance on the interest rate path and look for the repeat of prior language that ‘significant progress’ is needed before stimulus is removed. Only 1-2 members are likely to vote for an early end of the QE.” 

“With EUR/USD stabilising and the dollar experiencing some tentative progress, GBP/USD is likely to test the 1.4000 level. However, given that we see an upside to EUR/USD as limited and the UK specific news should not provide too much boost to sterling, we don’t look for a material spike in GBP/USD above the 1.400 level – rather a shallow one, if any.”