The Pound continues to erode on the charts in the face of lackluster economic expectations for the Eurozone, Eastern Europe and Russia. In fact, the September Pound has forged another lower low on the charts andhas established a rather definitive negative technical bias. Adding into the Pounds woes is a July UK Industrialoutput balance that was positive but weaker than the prior month. Another issue applying some pressure to thePound this morning is news of an expansion of the UK Budget Deficit in the first quarter as that suggests theworld’s most widely touted economy is not as brisk as the trade expected. The path of least resistance is pointingdownward with the next objective in the September Pound seen at 1.70 but another lower target of 1.6941 couldbe seen in the coming week.
