GBP/USD has suffered a substantial drop. Economists at ANZ Bank expect the British pound to remain under downside pressure for the time being.

EUR/GBP to remain within historical ranges

“We expect the GBP to remain under pressure as it trades close to a 40-year low amid USD strength in the near-term.” 

“EUR/GBP will continue to remain within historical ranges, primarily led by volatility in the EUR.”

“Over the medium-term, the end of the two-year fiscal plan on energy prices, coupled with a USD reversal, may lead to some recovery in the GBP.”