About That British Pound Collapse
- Posted by JC Parets
- on March 7th, 2013
A couple of weeks ago I first brought up this chart of the British Pound vs US Dollar. To me things don’t get cleaner. When something, I don’t care what it is, keeps hitting support this many times, eventually it’s going to break. We find this phenomenon constantly in asset classes all over the world. Bullish too, like in the Nikkei last Fall. But in the case of $GBPUSD, February’s test of support was #6. That’s too many for me…
Eventually I felt it would break. I didn’t necessarily expect it to happen right away, but hey we’ll take it. At this point I think enough time has passed that rallies can be sold and we’ll eventually get down towards those May 2010 lows in the 142’s
It looks like test #6 was the magic number on this one. It looks terrible, there’s no other way to put it. If this turns out to be a false breakdown and it just rips in our faces, then hey I was proven wrong and back to the drawing board. But I’ll be bearish on this chart 100 times out of 100.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- What I’m Waiting For To Buy Base Metals
- The Must Follow Podcast: JC Parets
- Long Crude Oil and Short Treasury Bonds?
- Fox Business: Time To Jump Into Russia?
- I Like Energy and Emerging Markets for Q2
- Audio: The Current Market Environment
- American Express Approaches Make or Break Point
- Benzinga Fintech Awards Gala April 8th
- BNN Appearance: Crude Oil, Transports & Google
- The Chart The Whole World Is Watching
Archive by Year