Note the recent rally in GBP/USD (green line) was taking place as yield support (red line bottom) was declining. This was a divergence in what has been a positive correlation. Based on the news bites from Reuters below the chart, it would seem relative yield (UK versus US 2-yr benchmark) is poised to decline further.
LONDON, May 11 (Reuters) - British industrial output shrank for a third month in a row in March, official data showed on Thursday, underscoring how the impact of last year's Brexit vote has begun to weigh on the economy.
LONDON, May 11 (Reuters) - Sterling fell to a one-week low against the dollar on Thursday after the Bank of England's inflation report showed interest rates were unlikely to rise within the next two years. Although the BoE said it might need to raise rates before the late 2019 date market pricing indicated, that was nine months later than its February forecasts showed.