We expect GBP to appreciate next week as at least one member of the MPC votes against holding rates unchanged, whereas our expectations for a steeper BoE inflation profile and expectations for higher wages will likely imply an early but gradual tightening cycle, which we continue to expect in Q1 2016. Technically, we are overall bearish for EURGBP and would prefer to use upticks as an opportunity to sell at better levels. Resistance in the 0.7225 area is expected to generate selling interest for a move lower toward initial targets near the 0.6930 range lows. A break below 0.6930 would encourage our bearish view and signal further weakness toward our greater targets in the 0.6770 area
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