GBP/USD to test 1.20 on a break above 1.1880 – ING

GBP/USD grinds higher above mid-1.18s. A break past 1.1880 would clear the way towards the 1.20 level, eocnomists at ING report.

Cable is at risk of a short squeeze

“With the market long dollars, cable is at risk of a short squeeze. We see 1.1880 as key intra-day resistance here above which we could be looking at a retest of 1.20.”

“For EUR/GBP, we would still favour the 0.8400 area as higher GBP rates force foreign holders of UK Gilts to lower rolling forward hedge ratios.”