Thursday, September 20, 2007

Is the British Pound Forming A Top?

The British Pound has been in an uptrend for quite sometime and I have been bullish and actually long just a few months ago, but now I see a possible change in trend taking place.

If you look at the above chart of the British Pound, you will notice a potential (and I stress the word "potential") Head and Shoulders pattern developing. In order for a sell signal to be given, the Pound would have to trade below the neckline which is around 19850...

As of now the trend is still up and there are NO signals to short, but I wanted to post this chart now (before the fact) so that those of you who follow this market can be prepared in case this market does indeed breakdown.

1 comment:

Sandro said...

Their financial system is under big stress now. So yes, there are some fundamentals under pound topping.


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