As in the rest of the non-Dollar currencies, the overnight fundamental news flow favors the bear camp in the Pound. Sluggish UK services growth, more weakness in UK energy based companies and technical damage on the charts leaves the bear camp in control. However, we have to think that the bear case is becoming fairly conclusive and that the risk to fresh Pound bears is on the rise. On a return to 1.50 we would suggest that shorts bank profits and move to the sidelines.
