GBP/USD stays on the back foot and continues to stretch lower toward 1.2100. Economists at ING expect the pair to trade back to the 1.19 zone.

Mildly bearish

“If we are turning to a more macro-led trading environment, then Sterling should underperform.” 

“A Fed staying hawkish into a recession should see equity markets come under renewed pressure. Typically, this is a negative environment for Sterling, where the UK's large current account deficit is penalised.” 

“GBP/USD has turned from a strong resistance level at 1.23 and our bias into next week would be for a return to the 1.19 area.”