British Pound

The head & shoulders bottom pattern got confirmation today with a close above the neckline.  We also got a close above the 20 DMA yesterday for the first time since January 10th.  Let's see if we can get follow through next week or if the bearish momentum returns.  One other piece of supporting data that I forgot to mention on Wednesday for some upside action comes from the COT data.  Commercials are approaching extreme longs, which is bullish.  Small traders are at 8+ year shorts, which is bullish.  Another thing worth mentioning is that large traders are a record net long the Dollar Index, which is bearish.  The Dollar Index has been on a nice rally the past month and a half.  We could see some dollar weakness the next week or two, which could be good for some of the other currencies like the Pound.