GBP/USD has recovered the 1.08 level. Nonetheless, economists at ING expect the pair to ease back lower towards 1.0350.

GBP/USD could trace out something like a 1.07-1.09 range today

“FX markets feel like the dollar is going into early 1980s over-drive territory and barring a stark reversal in hawkish Fed expectations or slowing growth dynamics, we would say cable could retest 1.0350 over the next month.”

“On a day in which the dollar is consolidating, GBP/USD could trace out something like a 1.07-1.09 range.”