ONE-TWENTY TWO - A collection of personal articles on financial markets including analysis you can use


Nov
23

Chart Review: British Pound Headed for Major Lows Versus the U.S. Dollar

written by Dr. Duru
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The British pound continues to validate my bearish outlook on the currency.

The recent break below the 50-day moving average (DMA) continues to generate lower prices versus the U.S. dollar. A fourth retest looms of support that has held for over a year. I am doubtful it will hold up yet again given the last successful test occurred on what should have been a bearish event: the printing of more British currency with another round of quantitative easing (QE). Below this support line, little natural support exists on the way to a retest of 2010 lows.


The British pound seems headed for 2010 lows against the U.S. dollar

The British pound seems headed for 2010 lows against the U.S. dollar


Source: FreeStockCharts.com

I will increase my bearish positioning against the pound if (once?) this major support line breaks.

Be careful out there!

Full disclosure: net short the British pound

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