The Pound continues to win by default but hawkish comments from the BOE and weak inflation datafrom the Euro zone highlight a classically bullish fundamental setup for the Pound. However, some traders think amove above 1.70 in the Pound will leave the UK with an overly expensive exchange rate, but the UK economy israre example of an economy capable of administering higher rates to meter growth and inflation! Up-trendchannel support in the June Pound comes in at 1.6911 and the trend remains up but the Pound is at risk ofbecoming overbought and vulnerable to energy related global slowing fears.
