Relatively speaking the Pound and the UK economy have probably been viewed in an overly negative light with the last two month’s decline. With the Pound reaching a potentially significant technical zone above the1.65 level, uncertainty toward the US recovery showing up in some numbers this week and ongoing expectationsof fresh QE from the ECB, the Pound is probably catching some default buying. We don’t think the downwardtrack in the Pound has culminated yet but a recovery back to down trend channel resistance of 1.6679 today andat 1.6646 by Friday, could be the extent of the recovery effort.
