GBP/USD has neared the 1.14 level. Nonetheless, economists at ING believe that the currency is unsustainable.

Downside risks remain elevated

“Cable has climbed back to the levels it was trading at before the mini-Budget announcement, but we struggle to see the current rally as sustainable.”

“We think the pound continues to face very significant downside risks as the large twin deficit, low market confidence in the new government and a grim outlook for Europe heading into winter all point to the unsustainability of 1.10+ levels in GBP/USD.”