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British Pound Technical Outlook

Tuesday, 04 November 2008 14:16:52 GMT

Written by Jamie Saettele, Senior Currency Strategist

The GBPUSD is supported by a long term trendline that dates to 1985 (see purple line at bottom of chart). 

I expect a larger bounce off of this line, regardless of the larger trend.  Measured support from the 100% of 2.1166-1.7443/1.8675 reinforces the long term trendline.  Similar to the EURUSD, a triangle could unfold (in which case the GBPUSD would remain below 1.6679) before a drop to a new low a larger recovery.

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