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British Pound Technical Outlook

Thursday, 06 November 2008 13:32:46 GMT

Written by Jamie Saettele, Senior Currency Strategist

The GBPUSD is supported by a long term trendline that dates to 1985 (see purple line at bottom of chart).  I expect a larger bounce off of this line, regardless of the larger trend. 

I have presented a potential count from the 2007 top.  Under the above count, a 4th wave is underway now that would likely take the form of a triangle or flat (the triangle labels are on the chart…a-b-c-d-e).  The result would be a volatile range over the next several weeks before a break to a new low.

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