GBP/USD closed below 1.2000 on Tuesday. The pair could challenge the 1.1800 level as Fed Chair Jerome Powell’s speech may support the greenback, economists at ING report.

Lack of domestic drivers

“Yesterday’s testimony by Bank of England Governor Andrew Bailey did not yield any market-moving headlines. Today we’ll hear from Chief Economist Huw Pill, who recently pushed back against a 75 bps hike and may therefore keep BoE rate expectations in check.”

“Cable to test 1.1800 as Powell’s speech may support the Dollar today.”