There will be divergence in near-term and medium-term Sterling confidence. The latest UK economic data will tend to increase a sense of unease over the economic trends, especially with a weaker housing sector. The worse than expected government borrowing data will also reinforce structural fears and illustrate the difficulties in securing long-term improvement which will raise the prospect of a credit-rating downgrade. There will still be some optimism over second-quarter GDP data which should provide some initial protection and there will also be speculation over votes for rates increases in the Wednesday MPC minutes. Overall, look to buy GBP/USD at 1.5120 early in the New York session for a short-term recovery.