GBP/USD snapped a four-day losing streak on Tuesday and closed the day above 1.2400. However, the pair is set to struggle at the 1.25 hurdle, economists at ING report.

Higher EUR/GBP if Bailey gives a nod to a pause in May

“Governor Andrew Bailey speaks in Washington today. There is a risk that he hints at a pause, having seen fellow central bankers in Australia and Canada do so over recent months.” 

“US CPI and Governor Bailey's speech should be the key drivers today. We see 1.25 as a strong barrier for GBP/USD and favour EUR/GBP higher – especially if the BoE governor gives a nod to a pause in May.”