The pound rallied after British Prime Minister Liz Truss backpedalled on her tax cut proposal. A break below the base of the latest rally at 0.8720 mirrors strong demand for the pound across the board. 0.8640 at the origin of a surge above June’s high (0.8700) is a critical support from the daily chart. Its breach would invalidate the rebound and push the euro into a corrective course. 0.8830 is the immediate resistance and the bulls will need to reclaim 0.8970 before they could hope to regain control.
