Sterling preserves its bullish momentum. However, economists at ING would not chase GBP/USD over 1.22.

EUR/GBP could easily retrace back up to 0.8900

“As in the US, depositors in the UK are being made whole and the government is looking to address the working capital needs of those exposed.”

“The market still expects the Bank of England to push ahead with a 25 bps hike on 23 March. This still may be at risk of being priced out, given the BoE was not far away from a pause anyway.”

“We could easily see EUR/GBP retracing back up to 0.8900, while we would not chase GBP/USD over 1.22.”