In spite of recent lukewarm UK data, the Pound has been able to put together a decent recovery this week and has lifted decisively clear of the key 1.5000 level. BOE officials have been cagey with their recent statements but are sending signals that “gradual” UK rate hikes are still on the table. If the Fed does soften their rhetoric at today’s meeting, the Pound could become a major beneficiary of Dollar weakness. Near-term resistance is at 1.5264, with a move above that level likely to become a sharp upside movement.
