While the BOE floated some hawkish dialogue overnight, a fresh higher high for the move was rejectedand the pendulum has shifted in favor of the bear camp. However, we see corrective action in the Pound as apotential buying opportunity, but traders probably have to wait until a return to 1.6750 before stepping back intothe long side. In short, the failure to rally in the face of hawkish BOE talk highlights a short term bearish tilt.
