Some of the recovery in the Pound over the last 48 hours was the result of an emotional appeal from the UK PM for solidarity and some of the recovery was the result of resistance against independence from unions andthe banking sector. It is also possible that UK incentives might temper the momentum of the push forindependence. However, the political threat against the Pound will remain in place until after the vote and onewould think that disappointing UK construction output and slower home building readings this week will add to theoverhead resistance in the Pound. Given the events ahead we have to think gap resistance up at 1.6275 will befairly solid.
