Seeing China tap on the brakes caught the Pound overvalued and technically overdone. Into theovernight high, the Pound was fully factoring positive Chinese lending data and ideas of less credit relatedheadwinds from China. However, once the PBOC pulled out liquidity, sentiment shifted 180 degrees and that inturn made the Pound the most overvalued currency in the short term. Seeing the Pound at 1.68 insinuates globalgrowth and tightening from the BOE and in the near term that is clearly premature. Logical corrective points in theMarch Pound are seen down at 1.6641 and then down at 1.6619.
