The Pound is winning be default and by ongoing “relief” from the referendum and not because of adistinct macro-economic edge. With a normal retracement of the July through September washout regainedtemporarily after the vote was known at the 1.6469 level, the trade is still attempting to determine its trend. Wecan’t argue against some additional near term gains in the Pound, as there are few alternatives to the Dollar,which is extremely overbought. However, to suggest a continued rise on the charts in the Pound ahead clearlyrequires some positive UK data flows. Support is critical at 1.6278.
