Pound/Dollar: Expected Fall to 1.5145

On Thursday the pound/dollar was trading above the LB in a range of 70 points. In the first half of the day the rate dropped to 1.5173 and in the second it returned to 1.5240. It’s now at 1.5199. If European trading sees a break of the 1.5191 support (LB and trend), I’ll be expecting a weakening of the pound to the 67th degree at 1.5145 (technical signal without any fundamental news)..

There is no important macro-economic data set to come out of the UK today. We could well see a calm correction against the growth from the 1.5026 minimum. The pound so far has corrected too high.