Light GBP Pressure As BoE’s Greene Sounds More Centrist

BoE MPC member Greene’s more centrist tone & the light spill over into GBP STIR markets (see previous bullets) allows cable to extend on the pullback from $1.2700, although the move is shallow and bases around $1.2655.

• The overarching technical picture for the pair is bullish, with initial resistance at the April 9 high ($1.2709). Initial support comes in at the 50-day EMA ($1.2568).
• EUR/GBP only sees a ~5-pip move, last GBP0.8585.
• Despite the pullback from the recent highs, a bullish short-term bullish condition remains in place for EUR/GBP and moving average studies are in a bull-mode set-up, highlighting a rising trend. A resumption of gains would open GBP0.8645, the Apr 23 high and a key short-term resistance.