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British Pound Technical Outlook

Wednesday, 03 December 2008 14:13:43 GMT

Written by Jamie Saettele, Senior Currency Strategist

Looking in at the hourly chart, the GBPUSD rally from 1.4554 is clearly corrective.  While this could be the beginning of a flat or triangle, it may also be a completed correction at 1.5539 that will lead to new lows.  Further, the decline from 1.5539 counts well as an impulse. 

A rally back to former resistance at 1.5073 would potentially complete wave ii within the bear cycle from 1.5539.  1.52 is the 61.8% of the decline from 1.5539.  This scenario fits well with a EURUSD rally in wave e before resumption of weakness.  

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