Bearish Technicals Remain In Place

GBP/USD sits 25 pips or so lower as we head into London hours pressing lows of $1.3807 at typing. The USD is little changed to a touch firmer vs. its G10 counterparts at the end of what has been a lethargic Asia-Pac session that was no doubt hindered by a holiday in Hong Kong.

• The broader projections for USD weakness around month-end didn't come to fruition on Wednesday, with a firmer USD weighing on cable, although some modest USD weakness did creep in ahead of the NY close as the DXY pulled back from the highest levels witnessed in nearly 3 months. That came after final Q1 GDP data out of the UK and hawkish parting shots from outgoing BoE chief economist Haldane failed to generate any feedthrough into GBP.
• With Q2 now in the books the G10 FX scorecard flags that GBP is one of only 2 FX majors to better the USD YtD, largely on the UK's early outperformance in the fight vs. COVID when compared to most of its peers, in addition to positive capital inflow dynamics and perhaps an unwind of some of the Brexit-related negativity.
• From a technical perspective bears still appear to be in charge following the recent weakness that resulted in the break of S/T support levels in the form of the 50-day EMA and $1.4006 (the May 13 low). The recent move below the 100-DMA also reinforces the bearish conditions. Scope is seen for an extension lower towards $1.3717 (the Apr 14 low), while the bear trigger is layered in ahead of that level at $1.3787 (the Jun 21 low). On the upside, initial firm resistance is seen at $1.4001 (the Jun 23 high).
• There is a distinct lack of notable nearby FX options over the coming days.
• Today's UK docket is headlined by an address from BoE Governor Bailey and the final UK manufacturing PMI print for June.