[B]The Trend of the Day - GBP/USD (Trend Reversal Alert)[/B]
GBP/USD dramatic fall from the heights of 2.1160 in November of 2007 down to the January lows in the 1.3500 personified the collapse of the global financial system. The bounce from this lows to the the 1.7000 highs paralleled the hope of an economic recovery. However, the Cable comeback has stalled at the 38.2% Fibonacci resistance and has broken the uptrend line. Lower swing highs and lower swing lows indicates that the down trend is back and unless Sterling can break out of this new descending trend channel, the 1.4000’s could be the next stop. Look to go short in the 1.6448 area.