GBP/USD is consolidating after heavy losses. Economists at ING believe that cable could stage a technical correction towards the 1.25 level.

Expect further EUR/GBP range trading

“A technical correction could see 1.2500 (1.2600/1.2660 looks too far) before the bear trend resumes to drag GBP/USD to 1.20. That certainly looks the direction of travel over coming weeks and months.”  

“EUR/GBP is consolidating in a 0.8500-0.8600 range. Expect further range trading, although politics is never far from sterling and could weigh on it at any time. Here UK-EU trade relations seem to be deteriorating again, with Downing Street threatening to unilaterally suspend parts of the Northern Ireland protocol. Doing so could spark an unwelcome trade war.”