British Pound Crosses Drop to Support

[DailyFX.com]

British Pound Crosses Drop to Support

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Written by Jamie Saettele, Senior Currency Strategist

The British Pound crosses have dropped into long term support.


Longer term, a drop below the all-time low at 1.7537 is possible if not probable given that the rally from 1.7537 is in 3 waves. The trendline that has held since November 2007 defines the trend. Divergence with RSI on the weekly suggests that the line could be put to the test before a drop to a new low.


<SPAN style="FONT-SIZE: 11pt">There is no discernible pattern (long or short term) in the GBPCAD. The pair is nearing long term support at 1.7668/1.8059 from the lows in 1989 and 1993. These levels are defended by a downward sloping support line drawn off of the 2003 and November 2005 lows.