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British Pound Technical Outlook

Thursday, 16 October 2008 14:36:18 GMT

Written by Jamie Saettele, Senior Currency Strategist

I wrote in these pages yesterday that “the rally from 1.6775 is an impulse (5 waves) and a corrective decline from 1.7635 may be complete at 1.7375.”  Assuming that the correction was done at 1.7375 was clearly wrong now that the GBPUSD has dropped below there. 

The pair did come close to the 61.8% of the advance from 1.6775, so Cable is in the area that is likely to produce a bottom.    

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