Forex Trading: GBP/USD From A Longer Term Perspective

Looking at Cable on a weekly chart from the June 2001 lows to the November 2007 highs, we can really see the drastic devaluation of the Sterling. Although there has been some significant price action over the last few months in between the 61.8% and full retracement levels, the price action and direction is clearly negative. With the Bank of England easing rates to historic multi-century lows and no recovery visible on the horizon and the European downturn to surely continue to contribute negatively to Great Britain, the 2001 lows are clearly in play, perhaps sooner than one might think.

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