GBP/USD establishes above 1.2250. However, economists at ING expect the pair to test the 200-Day Moving Average (DMA) at 1.2126.

Keeping an eye on key technical levels

“GBP/USD could hover around 1.22 today, but risks are tilted to the 1.2126 200DMA being tested soon.”

“EUR/GBP is trading around the 0.8630 100DMA, and while we have less of a clear directional call on this pair in the short term, we see upside risks in the longer run.”

See: GBP/USD to spend much of next year below 1.20 – Rabobank