The Pound continues to behave like an equity market index. The Pound started its upward march lastJuly in the wake of signs of UK growth that in turn were seen after, the UK embraced austerity. In the last twomonths the Pound has been bid up because UK data was outperforming its competition. The Pound has beenperiodically knocked down in the face of disappointing global economic news and traders should not rule outsome negative knee jerk reaction to US payrolls later today. On the other hand, seeing an as expected US NonFarm result could spring board the Pound into a fresh upside breakout. It is also possible that the Pound couldsee some temporary pressure if the Dollar manages to recover off today’s report, but if the US data is better thanexpected, that should ultimately serve to extend the run up in the Pound. Critical support is seen down at 1.6738.
