Friday, July 31, 2009

British Pound Breaks Through Resistance



As you know I've been following the British Pound for quite some time waiting for the breakout to the upside and it appears that is exactly what is taking place right now. The British Pound has broken out above resistance and its 2 month trading range. Notice the low ADX reading at the bottom of the chart which usually takes place just prior to a significant trending move. A move below this week's low will negate the bullish outlook that I have. Let's see what happens!

2 comments:

Anonymous said...

Hey Kevin,

I hate to disagree with you given how accurate you normally are, but IMVHO you are seeing a head fake on the pound. The dollar will most likely bottom with one more small thrust on Monday. Using UUP as a common reference, it will likely take the form of a thrust from the UUP close of 23.32 down to 23.20. After that the dollar will begin a big, bad new bull market that you are simply not going to believe.

When you see it happening, keep one thought in mind: deflation.

GL!

DaveT

Kevin said...

Hi Dave,

You might be right but on the other hand I might be right as well. Like I said in my post, a move below this past week's low would negate my bullish outlook but until that happens, I have to remain bullish.

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