Cable Settling Back Into Familiar Range

Cable has started to show potential signs of settling back into the Mar-Apr range in recent sessions, with bears now managing to register 4 consecutive closes below $1.4000. Asia-Pac participants were seemingly willing to buy Monday's USD dip, with the move extending a little ahead of London hours. That leaves GBP/USD ~35 pips lower on the day at $1.3900.

• The UK economy and fight against COVID seem to have hit some headwinds, although the last push on both these fronts was always going to be tougher than the celebrated outperformance during earlier stages of '21. There was little in the way of notable headline flow observed in the UK press overnight, with continued speculation surrounding international travel restrictions evident.
• A reminder that Monday saw a very short-lived and shallow look below Friday's lows, before the USD gave way vs. most of its G10 counterparts, with yesterday's low ($1.3787) now providing initial support. To the upside, the Jun 18 high ($1.3977) and the 50-day EMA provide the initial points of technical resistance.
• Public finance data headlines the UK docket on Tuesday, ahead of Wednesday's flash PMI prints and Thursday's BoE decision.
• There is nothing in the way of notable nearby option expiries observable over the coming days.