GBP/USD is back below 1.20 and heading to new lows. Economists at MUFG Bank note that the 1.15 could be in sight on a break under the low from July at 1.1760.

Downside risks to H2 GBP forecasts

“We are close to hitting our end-Q3 GBP/USD forecast of 1.1790 and we certainly expect levels below that over the near-term. We also expect the low from July of 1.1760 to break.”

“Covid-19 lows just below 1.1500 would be next in sight.”