-
The One Currency Getting Pounded By the Buck
The Bank of England (BOE) just released the minutes from their meeting over night. From just the BOE’s bearish statements, the economists around the world are speculating that the Bank could cut rates as soon as the April 9/10th meeting. So the fundamentalists have a reason to short the pound against the buck now. How about the traders like myself who follow the charts? Yeah, we’ve got good reason drop our pounds as well. Let me explain. There's a charting pattern in the financial world known as the "head and shoulders" pattern. In short, it’s a bearish sign. It usually means that you've put in a "top" for the moment. It’s called a “head and shoulders” pattern because that’s exactly what it looks like on the chart. The left and right "humps" are the shoulders and of course the middle, higher hump, is the head. I see the GBP/USD pair breaking the uptrend line. However, it's only when this pair breaks through what they call the "neckline" (black line below) that you enter the trade. In other words, the dollar is getting really to assault the pound once again. It’s written all over the charts and it’s hidden in the BOE’s statements. It's a great thing when both the economists and the traders agree on the same trade. I can see this pair targeting the 1.9600 level minimally over the upcoming days to weeks. This will be enough to break the short-term uptrend line on the daily chart which, in turn, brings in the big money to short the pair as well. So get ready for a "pounding.” It’s already headed the U.K.’s way.
- Comments
- Subscribe
- Comment #1
- Mar 19, 2008 11:00pm Mar 19, 2008 11:00pm
- tommsu99
- | Joined Oct 2006 | Status: Member | 0 Comments
- Comment #2
- Mar 20, 2008 12:12pm Mar 20, 2008 12:12pm
- shmcc2000
- | Joined Jun 2007 | Status: www.mywealth.com | 0 Comments
- Comment #3
- Mar 20, 2008 12:40pm Mar 20, 2008 12:40pm
- agnes
- | Joined Dec 2007 | Status: Member | 0 Comments
- Comment #4
- Mar 20, 2008 4:45pm Mar 20, 2008 4:45pm
- shmcc2000
- | Joined Jun 2007 | Status: www.mywealth.com | 0 Comments