ING Research maintains a bearish bias on GBP/USD in the near-term.
"While moving largely in line with other European currencies, the pound continues to show a higher beta to risk sentiment compared to only a few weeks ago. This is likely a legacy of the late-September meltdown that is there to stay," ING notes.
"We still deem the pound’s current levels as unsustainable given the fragility in the bond market and the UK’s deteriorated fiscal and current account position. A return to sub-1.10 levels in Cable is a question of when rather than if, in our view," ING adds.