Medium-Term, British Pound Likely to Underperform Other Major Currencies
The LFB submits:
One of the strongest moving currencies this week had been the Great British Pound, in reaction to market noise that showed the possibility of quantative easing being addressed sooner than some had expected. The move that started on Monday, to move higher from 1.6280 started on Monday and stair-stepped higher throughout the week to reach up towards 1.6700
In trade on Friday the pair took an elevator ride lower, and retraced five days worth of trade in two 30 minute periods of trade that removed 350 pips from Gbp/Usd valuations. TheLFB Members were highlighted to the fact that cable had over-shot its mark in regard to long moves, and that a close under 1.6500 on a 4 hour chart would draw in sell orders. That certainly has followed through and the 1.6500 area will once again become massive upside resistance.
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