GBP/USD is consolidating above the important 1.15 level, holding onto recent gains. Nonetheless, economists at ING expect the pair to move back below the 1.15 mark.

Thursday's BoE could do some damage

“The highlight this week will be Thursday's Bank of England meeting. The market firmly prices 75 bps, but we think the risk of a softer 50 bps is under-priced as the BoE prepares for the coming recession.” 

“The forthcoming tighter fiscal and more dovish than expected monetary policy could prove a bearish combination for sterling.” 

“We are dollar bulls and would thus favour GBP/USD breaking back under 1.1500 based on this week's confluence of events. This would also point to current EUR/GBP losses under 0.8600 proving short-lived.”