A fresh downside breakout in the Pound and the lowest trade since mid-June would seem to leave the bear camp in control regardless of the developing short term oversold condition of the Pound. Apparently thetrade has lost its respect of the UK economy but one might also suggest that part of the negative view toward the Pound is spilling over from the sustained pattern of declines in global equity markets. In other words, if the world outlook is gloomy then currencies priced for growth have to lose some value. The inability to hold 1.68 on a closebasis today could set the stage for an eventual retest of 1.67 in the weeks ahead.
