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British Pound Technical Outlook

Monday, 10 November 2008 13:51:29 GMT

Written by Jamie Saettele, Senior Currency Strategist

Cable is lagging the EURUSD.  Still, there is no structural change to the pattern.  “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…the result would be a volatile range over the next several weeks before a break to a new low.”  The range to this point looks like the firs two legs of a triangle with price now at the lower end of the triangle.  A c wave rally could reach 1.62 + this week.

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