GBP/USD gained more than 50 pips on Tuesday and went into a consolidation phase above 1.18 on Wednesday. Nonetheless, the pair is expected to drop towards 1.17/16 this week, economists at ING report.

EUR/GBP may bottom out if it reaches 0.84

“We see downside risks for cable as yesterday’s dollar drop may be unwound further, with 1.16/1.17 remaining the bias for this week.”

“EUR/GBP may bottom out if it reaches 0.8400, as similar economic troubles for the UK and the eurozone argue against sustained deviations from its recent range.”