According to Jinshi Data, Chris Turner, an analyst at ING Group, said that the pound is expected to strengthen as UK inflation data to be released later this week may support the Bank of England's cautious attitude towards interest rate cuts.
Services inflation is expected to remain above 5%, which means the Bank of England is likely to continue its gradual approach to policy easing.
Weaker-than-expected UK economic growth data released last Friday prompted a sharp rise in EUR/GBP to a two-week high of 0.8335.