Economists at Rabobank discuss GBP outlook and share their GBP/USD and EUR/GBP forecasts.

EUR/GBP to trade in a choppy range in the coming weeks

“The government’s position has altered significantly since September, but many of the underlying weakness in UK fundamentals remain.”

“Positioning suggests that both the Pound and the EUR are ill-equipped to face disappointing economic data currently and we expect EUR/GBP to trade in a choppy range in the coming weeks. That said, we see scope for cable to drop to 1.22 on a three-month view.”