Sterling has been under pressure over the last week. Economists at ING analyze GBP outlook.

EUR/GBP could correct back toward the 0.8600 area

Given the lack of top-tier UK data this week and what could be a slightly hawkish Fed meeting on Wednesday, it may well be that the repricing of the BoE rate cycle and Sterling softness have come far enough for the time being. This could see EUR/GBP correct back toward the 0.8600 area.

GBP/USD could correct to the 1.2670/2700 area this week if the Dollar correction does run a little further on the Fed story.