After a wild ride since the late summer, Sterling could now begin to take less of the limelight. GBPUSD could move back lower to the 1.1700/10 area this week, in the view of economists at ING.

Sterling could take a welcome back seat

“EURGBP is softening as the Euro seems to be taking the larger strain of the softer China view. However, 0.8665 should be good intra-day support. We are more bearish on GBPUSD. And unless Wednesday's FOMC minutes throw up some dovish surprises, GBPUSD could drift back to the 1.1700/1710 area this week.” 

“Our year-end GBPUSD target remains a reasonably aggressive 1.10 – largely on the back of renewed Dollar strength.”