GBP/USD is having a difficult time staging a rebound. Economists at ING expect the pair to retest the 1.1406 lows.

EUR/GBP seen back to the top of an 0.8650-0.8720 range

“The overall environment remains sterling negative. Running a large current account deficit and having a large financial sector representation in the UK economy, slowing growth and weaker equity markets should leave sterling as an underperformer.”

“Sterling is at the mercy of the strong dollar, where we expect a retest of the 1.1406 lows. And further equity weakness would send EUR/GBP back to the top of an 0.8650-0.8720 range.”