The wild volatility in the pound continues today with a 240 pips deop to 1.1238. The weekly gain has now been trimmed to about 100 pips as the US dolalr reasserts itself.
The pound stalled out just ahead of the 61.8% retracement of the Aug-Sept decline.
That's a bearish signal and today's price action indicates that a short-squeeze has run its course.
Today's UK services PMI was a tad stronger than expected so there's no real catalyst here but a falling pound will certainly make Bailey and Truss' jobs tougher after a brief respite.
