Cable duly saw accelerated overnight losses when aforementioned critical support in the 1.7040/50 area gave out, taking it to a low around 1.6770. Presently in early London trade the pound is trying to make a recovery, with cable back up at 1.6930. The fundamental backdrop however remains pretty parlous at the present time. The pound’s best chance of recovery is if the G7 can come up with something to restore confidence and we see an accelerated unwinding of risk aversion trades. Sources report that there has been a lot of Russian selling of sterling in recent sessions, but they are at something of a loss as to reason why. Maybe they just wanted to make some money?