Spread bets and CFDs on the sterling in forex trading should consider that it is pulling back a bit, halting its rally on the spot forex market. Earlier today, the U.K. pound touched 1.53.

Sterling has seen some success on the spot forex market recently, thanks to the fact that things are starting to show some improvement. Indeed, U.K. employment data has been reasonably positive, showing improvement. Additionally, the Bank of England appears to be concerned about inflation. Higher inflation is a sign of economic growth.

On top of this, it appears as though British public debt has not grown as much as forecast, and that is providing some encouragement as well.

Sterling has pulled back from its recent highs, though. Moving lower against the U.S. dollar as investors consider a correction, in spite of the positive jobs data coming out of the U.S.

Sterling is seeing a turnaround on the spot forex market -- at least for now. Spread betting and contracts for differences on the spot forex market should consider that the latest home prices out of Britain, sparking optimism that the housing market is firming up.

Indeed, the sterling comes on the heels of European Union criticism of the way the U.K. has been handling its deficit. However, the U.K. pound got a boost in forex trading on a vigorous defense. GFT's Boris Schlossberg reports in FX360 on Britain's self-defense:

UK Treasury Secretary Byrne vigorously defended the government’s actions stating that EU has “got its judgment wrong over the deficit.” The comments spurred a short squeeze which was aided further by much hotter than expected DCLG house prices which shot up 6.2% vs. 3.5% eyed indicating that UK housing sector is beginning to firm up.

While it is uncertain how long this rally will last, it is clear that, for now at least, forex traders appear ready to give the sterling a chance.

The sterling is down -- again -- in spot forex trading today. Spread bets and CFDs on the pound should consider that the currency continues to struggle as fundamentals desert Britain.

Indeed, they latest blow is the news that Moody's may cut Britain's AAA sovereign debt rating. Warnings were issued earlier about the possibility that the U.K., U.S., Germany and France could all see reductions to their credit ratings.

On top of this, Britain is still facing the problems of mounting public debt and the possibility that the Bank of England may resume quantitative easing. All of this points to problems still in the British economy, and it is no wonder that the sterling can't find support in spot forex trading.