FXStreet reports that economists at ING expect the cable to stay under the 1.40 level as the dollar enjoys bullish momentum.

“This week sees the release of the UK growth numbers for 2Q. Our economist expects to see a strong 5.0% QoQ read. Despite the high probability that the rebound in activity has paused in the summer months, the release should fuel expectations that the British economy will be back to pre-pandemic levels by year-end.” 

“After the Bank of England likely sounded less alarmed than feared about the Delta variant spread and the UK government that has continued to ease travel rules, the underlying narrative for GBP appears to be by and large positive. EUR/GBP could extend its downward trend after breaking below 0.8500, but cable may struggle to break above 1.4000 if the USD remains supported.”