While the Pound has built a significant consolidation zone on its charts, the fundamental condition does not appear to stand in the way of more downside action. Clearly the Pound has some capacity to stand up to the Dollar relative to other currencies especially in the wake of BOE commentary that UK deflationary pressures are not a significant concern of the MPC. In fact, BOE statements suggest that the UK economy is relatively stronger than most foreign zones and that should make close-in consolidation low support around 1.5624 more significant. Pick on other currencies with short side plays, as the Pound has some fundamental substance.
