The GBP/USD pair was last seen retreating toward 1.21. Below here, cable could retest the 1.1950 low, economists at ING report.

Downside risks persist

“Brexit-related headlines should continue to come in over the coming days, but the pound may remain little touched by them for now.” 

“A re-pricing of aggressive Bank of England expectations is the biggest risk for the pound, which also remains exposed to further risk sentiment instability.”

“Should we see a break below 1.21 in cable, the 1.1950 low could be re-tested soon.”

“When it comes to EUR/GBP, an almost equally unattractive euro should keep the pair around 0.86.”