Who would have though the beleaguered pound, battered by the UK’s reliance on international finance, would be challenging important resistance in the 1.5350/75 reason amid only the most tenuous sign of recovery of the UK economy? But here we sit, less than 50 pips away from that important resistance level. More important than anything specific to the UK economy is the fact that the global economy did not fall off a precipice as looked possible in early March.
1.5352 was the high last Tuesday while 1.5370 was the high posted during the reflationary boomlet that swept the market in the early days of 2009. A break of these resistance levels targets a push up to the 200 day moving average at 1.5586.
