Economists at Rabobank expect GBP/USD to trade around 1.2600 on a 3-month view.

Cable to turn lower into autumn

"Before the BoE next meets on September 21, there will be plenty more economic data to digest.  This will include another labour report and, including tomorrow’s release, two more sets of CPI inflation data. Although another rate hike in September looks all but certain, clearly policymakers will be hoping for further signs that inflation and wage growth have started to ease and that the peak in Bank rate is moving closer."

"We expect cable to turn lower into the autumn on the expectation that the peak in rates will then be close. We see cable edging back to GBP/USD 1.26 on a 3-month view and towards 1.22 in 6 months. We maintain the view that risks between GBP and the EUR are fairly evenly balanced and look for further range trading around the EUR/GBP 0.96 level on a 1-to-3-month view."