GBPUSD: fundamental bearish

Another leg higher in equities yesterday has kept risk on the front foot, with the dollar broadly lower across G7.

GBP notably underperformed with EURGBP pushing back to the mid 0.90s on what looked a like flow driven move, the positive June GDP number unable to outweigh the sense that the UK still has a long way to go to recovery given the large fall in YoY GDP.

We remain bearish the pound, although, with the dollar expected to remain under pressure, prefer to play this through the cross, looking for a dip towards the 0.90/0.8980 region to buy into.