The Pound might have reached a near term overdone peak with the 1.6662 high. Part of the reversalaction in the Pound this morning is probably technical in nature, as the Pound off the mid January low, has comea long way in a short period of time. It is also possible that the Pound was indirectly undermined as a result of theescalation of emerging market concerns, as UK assets and currency have been benefiting from the idea that theUK economy is recovering and an emerging market meltdown could catch UK instruments in an overvaluedposition. However, fundamentals provide support for the Pound but a normal corrective setback to 1.6550 mightbe needed to balance the charts and set the table for a resumption of the uptrend.
