Economists at ING analyze the outlook for the British pound. They see prevalent downside risks and expect GBP/USD to sink towards 1.10. Meanwhile, EUR/GBP is set to trade above 0.87 .

EUR/GBP to build a solid floor at 0.87

“We mostly see downside risks for cable from current levels, and expect a drop below 1.10 in the near-term.”

“In EUR/GBP, 0.8700 may emerge as an increasingly solid floor over the coming weeks.”

See: GBP/USD to remain vulnerable amid UK monetary and fiscal policy concerns – HSBC