Well the GBP/USD hit 1.50 as I predicted in my last post about this pair, but it wasn't really that hard a prediction to make in all honesty. This pair is in such a downtrend at the moment that a testing of the 1.50 level was almost inevitable.

The Supertrend (an excellent indicator that I use) is currently red on the daily, weekly, monthly and quarterly charts which indicates a bearish trend on all of these time frames, so there could well be a lot more downside yet before the bottom is reached. As I said in a previous post the 1.40 level is certainly not inconceivable, and with the UK economy so weak at the moment it could even fall all the way to 1.30.

Interestingly if you take a look at the 30 year quarterly chart of this pair and draw a trendline between the two bottoms in 1985 and 2001 you will see the trendline is around the 1.52-1.53 level, which has just been broken today, so this would certainly suggest a further fall could be imminent.

Of course for most forex traders, including myself, all of this analysis is irrelevant because we only trade on a day-to-day basis, but it's good to take a look at the bigger picture every so often.