GBP/USD to press the 200-DMA at 1.2430 – ING

GBP/USD trades below the 1.25 level while EUR/GBP holds above 0.86. Economists at ING discuss GBP outlook.

EUR/GBP could edge up towards the 0.8670 area

If we are right with our call for an ECB rate hike on Thursday, EUR/GBP could edge up towards the 0.8670 area. And given that we like a continued strong Dollar in the short term, expect GBP/USD to press the 200-Day Moving Average at 1.2430. 

Recall that based on speculative positioning data, both the Euro and Sterling look the most vulnerable to further Dollar strength.