The pound has been been trading like a global banking ETF these last several months with upbeat banking news boosting the pound and downcast news undermining it. The early reaction to the PPIP plan has been positive for bank shares, so the pound has been rallying. The real bank ETF (XLF is the ticker symbol) is up 9%.
EUR/GBP fell back to test important support at 0.9320 today, dipping below by a few pips before rebounding. GBP/JPY has been a big gainer today, up more than 4 yen on the session to 141.85 so far (now at 141.45).
Cable stalled just shy of 1.4660 resistance this morning. A break targets 1.4985. 1.4510 is support on pullbacks near-term.
