The pound has started the week losing some ground against both the dollar and the euro. While the EUR/GBP pair is set to hover around the 0.83 level, the GBP/USD is set to extend its downtrend towards the 1.30 mark, economists at ING report.

EUR/GBP may not weaken much more below 0.83 

“We continue to see the euro as more exposed to any dollar strength given the higher sensitivity to energy prices and greater monetary policy divergence with the US, although EUR and GBP have indeed moved in tandem in recent weeks and EUR/GBP may not weaken much more below the 0.83 mark for now.

“Cable may well extend its current downtrend towards the key 1.30 support that it briefly tested in mid-May.”