Analysts at UBS are out with a note recommending heading to the sidelines in EUR/USD and GBP/USD.

They key EUR/USD level they’re watching on a closing basis is 1.3164 which is the 61.8% retracement from June to July. A close above could pave the way to 1.3417, they say.

In cable, they say a close above 1.5283 (which is likely at this point with spot at 1.5363) would point to modest further gains toward resistance at 1.5394.