GBP/USD has bounced towards the 1.15 level. However, the pair is unlikely to break this barrier, in the opinion of economists at ING.

EUR/GBP unlikely to sustain a move under 0.8550/8600

“We suspect that GBP/USD may struggle to break the 1.15 area. Will it trade back to 1.20, where it was before fears of a Liz Truss government started to hit the Gilt market? Probably not.”

“EUR/GBP was trading at 0.84 in early August and we would say the political risk premium and a difficult external investment environment will make it hard for EUR/GBP to sustain a move under 0.8550/8600.”