While overall macro economic clouds appear to be dissipating, the Pound remains expensive on itscharts relative to early February levels. In fact, given the suspect outlook for the US economy, the potentialnegative influences of severe Russian sanctions and given ongoing anxiety from Chinese real estate, we suspectthat the Pound will remain off balance and vulnerable to more long liquidation ahead. As we have suggested anumber of times over the last two months, the Pound was recently priced for economic perfection and the currentoutlook remains suspect. Near term targeting and support is seen down at 1.6557.
