January 20, 2009

GBP/USD Dives Below 1.40 - Loses 1000 Points In Less Than 24 Hours

Well I predicted a fall to 1.40 a month or two ago, but to be honest I thought we were starting to find a base at around the 1.45 level. Clearly not though because the poor old GBP/USD has absolutely plummeted in the last day or so going from around 1.50 to 1.40 in no time at all.

There was a lovely EMA crossover at the start of this move, which I managed to take a decent profit from (more details to come in my weekly trading update) but unfortunately it's now a whopping 800 points in profit.

So how much further can we fall?

Well I think I made a prediction in my last analysis of the GBP/USD that we could hit 1.30 and that doesn't look unrealistic now. A combination of the dismal UK economy and the feel-good factor of Barack Obama coming into power indicates a weakening £ and a strengthening $, which of course suggests that the GBP/USD could easily fall further.

 

 

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1 Comment on GBP/USD Dives Below 1.40 - Loses 1000 Points In Less Than 24 Hours »

January 23, 2009

Yohay @ 10:07 am:

The pound is back to levels last seen in 1985. 1.30 looks more realistic than ever.

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