GBP/USD could see some further gains to the 1.22/23 area – ING

GBP/USD touched its highest level in three months at 1.2155 on Thursday. Cable could see further gains to the 1.22/23 region, economists at ING report.

EUR/GBP has good support in the 0.8550/8600 area

“We think positioning has played a major role in this Sterling recovery and GBP/USD could see some further, temporary gains to the 1.22/23 area – which we would again see as the best levels before year-end.” 

“EUR/GBP has good support in the 0.8550/8600 area and given our view of a difficult risk environment into year-end and early 2023 as central banks raise rates into recessions, sterling should remain vulnerable.”