Tuesday, May 12, 2009

Bullish on British Pound.

Have a look to the picture above. It is 12 years chart of currency pair EUR/GBP. You can see that the worst recession in UK history since Second World War sent British Pound to 0.97 against EUR.

But with the signs of bottoming currency pair is traded now around 0.90 with declining triangle pattern. If support level for EUR (0.88) will be crossed the pair is heading to support range 0.80-0.77.

Another stop would be 0.72.

Bullish signs for Pound based on technical recovery. On the other hand any downside correction for equities will push Pound lower.


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