The GBP was already rallying from its lows reached after the disastrous GDP report. A main reason is TA fans identified a presumed bull flag on the GBP/USD charts in July (apparently same flag also appeared for EUR/USD, which is now languishing as I write), and the followers of Mrs Watanabes are quite certain GBP will reach or exceed 1.67 target in the near future. Which then gives all of us a better opportunity to short this country which does not make anything that people want to buy anymore. With the lowest interest rate among the G8, a QE program that cannot possibly be removed the rhetoric of Mr King notwithstanding (several members voted for an increase in QE the last BoE meeting), an economy deeply dependent on the financial and real estate sectors, and small companies bankruptcies still at their highest since WWII, not so sure where Mr Posen obtain his coincidental evidence from. Fade the TA fans and Mrs Watanabe (who perhaps have not checked the yen vs GBP interest rates lately).