The Pound is partially set to win temporarily by default as continental investors might see the wild action in the Euro and Swiss as a reason to vacate EU instruments for less violent waters. The Pound is also benefiting from ideas that even more global financial turmoil is likely to discourage the US Fed from hiking rates later this year. In short, the Pound might be poised to short cover in the short term, but we don’t see this as a major trend change event. Initial resistance is seen up at 1.5263 and more significant down trend channel resistance is seen up at 1.5448 but that resistance falls down to 1.54 early next week.
