The British pound has fallen again during the day on Wednesday, reaching towards the 1.30 level for major support. I believe at this point; the market probably looks likely to bounce as the 1.30 level is significant support. If we were to break down below the 1.30 level, that would be an extraordinarily negative turn of events, and I think it would break down the British pound significantly. I believe at this point, the market will continue to be difficult to deal with, but clearly if there is an area where we should see a lot of pushback. There has been a significant break down, and at this point it’s easy to suggest that perhaps we are a bit oversold. If that’s the case, a bounce towards the 1.31 level is very likely, where I would expect to see a significant amount of resistance as we had broken down below that level rather rapidly. I see a lot of supply at the 1.31 level, but certainly a short-term bounce would make some sense from these extraordinarily low levels.
If we do break down below the 1.30 level, then it’s likely that we unwind towards the 1.29 level, and then the 1.275 level after that. I’m a short-term buyer, with a bit of concern.