GBP tempered its recent gains, with risk appetite waning after market took a more sober outlook overnight amid fresh concerns over the Chinese market. There were rumors out of the region that the inland revenue department could increase tax on equity trading and property tax, which weighed on the Asian market and followed through to European FX. Cable pulled back from 1.6956 highs and eyes a move under 1.6900, which are still relatively lofty levels given the progression seen already over the last month. A correction has been widely expected after failure to sustain 1.7000 on Tuesday and a push toward 1.6825-50 is feasible. Elsewhere, EUR-GBP has found traded on a more supportive footing after European account bids held around 0.8480 yesterday, although follow through has been limited to the 0.8525 area as EUR-USD also turned corrective. Fundamentally, U.K. releases have been positive overnight, with Halifax house prices up 1.1% in July, U.K. temporary employment placement improving and U.K. retail annual shop price inflation rose 0.5%. Overall, these should add to expectations of an end to the BoE’s QE policy, which should reinforce the underlying bull trend in GBP.