Has Sterling Tumbled into an Abyss? Oblivion

There is no shortage of hype about sterling’s collapse. The consensus view is that the pound is on an unstoppable train to oblivion.

Over the last 25 years, sterling has developed the knack of deeply disappointing buyers on any approach to 2.0000. While attacks on 1.4000 have bruised many sellers. I am not the world’s greatest sterling fan.

However, I am a big believer in the long-term trend and until it is broken my view is that sterling can build a base between 1.4900 and 1.5000.

A weekly close beneath 1.4865 would be a very bearish development.

Have a great weekend!

Brian Kiely

Forex For Anyone

Tags: Sterling, Trend

2 members like this

Comment by Romano on March 8, 2013 at 6:12pm: U have bigger chart history than me, on my platform it only show from about `86, now it make difference. I never knew pound was almost to parity with $. Finally, now when I can see your chart, it actually look very bearish to me. 1.15-1.3 could be very possible.

Comment by Brian Kiely on March 10, 2013 at 9:56pm: There have been plenty of wild rides in Sterling

Comment by Max on March 10, 2013 at 10:00pm: Hi Brian, good post, I wonder if you can tell me what software platform?
I'm staying optimistic too on pound.

Comment by Brian Kiely on March 21, 2013 at 9:10pm: Software is open source - free access on dailyfx - intermediate charts

Comment by Lisa on March 21, 2013 at 10:07pm: Thanks for your insight on this, Brian

If I may, I had posted my trade here earlier on Gregor Horvat's post

GBPUSD Trying to Break Above The Neck-line

~~~~~~~~~~~~~~~~~

Taking liberty in drawing the FoRk, I see price on MedianLine, ...

which I suppose can act like dynamic trend-line SUPPORT (?) :

I placed the Andrew’s FoRk at the high here :

Bringing-it in for a closer look, take a look at the rejection :

The trend is clearly BEARish, but possibly we’ll be tightening-up / basing the trading range ...

for a longer term BULL trend sometime in the future (I don’t know) just speculating :