The UK saw a stronger than expected July Services PMI result this morning and that has finally resultedin a recovery reaction on the charts. In fact, the September Pound appears to have reversed a three week olddown trend pattern with the rise back above 1.6865 this morning and it has managed that action in the face ofnegative talk toward the UK banking sector. We suspect that the Pound will attract some short covering buyingtoday, but its reaction to US Factory Order results will be the real test of its initial reversal action today.
