In the view of economists at ING, the EUR/GBP could move back lower to the 0.8400/0.8390 area while the GBP/USD has a chance to drop under 1.20 again.

EUR/GBP can soften a little

“News that Germany will impose a gas levy – confirming that the government cannot fully shield households from the spike in gas prices – leaves the UK less of an outlier in Europe. This will be one of the factors helping to limit EUR/GBP gains and could actually favour a drift back to the 0.8390/8400 area.” 

“EUR/GBP can soften a little, but a stronger dollar means that cable can go sub 1.20 again.”