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British Pound Technical Outlook

Tuesday, 23 September 2008 14:16:49 GMT

Written by Jamie Saettele, Senior Currency Strategist

There is no reason to alter the bullish view but watch for resistance near 1.878.  This is the confluence of the 38.2% of the entire decline from 2.1160 as well as daily highs from August.  Not shown on the chart is a Fibonacci extension at 1.8815. 

In summary, expect strength to continue into roughly 1.88, but then the GBPUSD will be vulnerable to a wave iv corrective decline.  Price should remain above 1.8280.

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