GBP/USD has climbed above 1.2300 for the first time since late June. Economists at ING believe that the pair is unlikely to extend its race higher beyond 1.25.

Cable is still a Dollar story

“We struggle to see Cable extend its rally to 1.25 and beyond, but it will undoubtedly be primarily a Dollar/risk sentiment story driving the pair before the BoE meeting.”

“A contraction below 1.20 seems more appropriate given global and UK macro fundamentals.” 

See: GBP/USD now looks at 1.2400 – UOB