GBP/USD might find some support near 1.2600, EUR/GBP could easily drift back under 0.8600 – ING

Economists at ING analyze the GBP outlook.

Too soon to start Selling sterling on hard landing fears

We think it is too soon to start Selling sterling on hard landing fears. 

We think Sterling only sells off when the data – both inflation and labour market data – suggest the BoE can ease up in its hawkishness. Until then GBP/USD might find some support near 1.2600 and EUR/GBP could easily drift back under 0.8600.

See: EUR/GBP to climb above 0.90 in the coming quarters – Commerzbank