GBP/USD: Despite the slew of better than expected UK data, price action in GBP had been slightly disappointing as the currency failed to top its YTD peak. That said, the outlook remains encouraging for GBP/USD, which remains in an uptrend. With newsflow relatively light the focus for GBP will be on the Treasury Select Committee, in which BoE’s Bailey, Haldane, Saunders and Cunliffe are scheduled to speak (1530BST). On the topside, resistance is situated at 1.4200-10 with 1.4230-40 above, while support resides at 1.4100 and 1.4000.
GBP/USD Chart: Daily Time Frame
EUR/GBP:Price action has been on the dull side of late in the cross, which remains in a well-defined trading range. That said, while a break of the range appears unlikely in the short-term, upside risks are beginning to rise as EU/UK 5yr real rates turn higher. However, the bias would be to fade the range lows and highs for now.
EUR/GBP vs EU/UK 5YR REAL RATES
EUR/GBP Chart: Daily Time Frame