• Cable has struggled to maintain a foothold above 1.30

• Stalling momentum largely stems from euro pullback

• With UK budget due Mar 26 - risks to GBP are lower leading into event

• BoE unlikely to move needle for sterling with UK budget ahead

• Tighter GB/US rate differentials backs a retracement in cable

• 10yr spreads suggest a test of 1.28 is possible

• Dollar shorts are in a tricky position
gbpusd vs 10yr spreads

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)