GBP/USD holds lower ground around 1.2030. Economists at Commerzbank expect the pair to slide below 1.20 again.

Bank of England seems rather behind the curve in terms of fighting inflation

“The BoE seems rather behind the curve in terms of fighting inflation, although it is ready to tighten further despite the expected recession.”

“I fear that it will not be possible for the pound to regain ground in this situation for the time being. It will be especially difficult against the dollar. Hence, I think it is quite likely that cable will fall below 1.20 again.”