ING strategists see the pound’s recent gains as overextended, with EUR/GBP 1.5% undervalued at 0.850.
The British pound’s recent rally has stalled, with EUR/GBP recovering from a key support break. The cross now trades at 0.850, roughly 1.5% below ING’s short-term fair value estimate, signaling potential overvaluation in GBP.
Earlier momentum in sterling had pushed the pair lower, but the rebound suggests a shift in sentiment. Analysts note that the pound’s strength may have been overdone, particularly as broader macroeconomic conditions remain uncertain.
No immediate market reaction was specified, but the adjustment aligns with expectations of a corrective move in the cross.