Cable Breaks LT Resistance

Written July 18, 2010 at 8:37 PM EST by  

The quick breakdown in the GBP/USD pair that begun in the summer of 2008 to the lows in the winter of 2009 when the mortgage crisis spread from sub-prime (began summer of ’07) to the entire market has been defended by a steep resistance  line that was tested numerous times as the pair attempted to retrace throughout 2009. Lat week we saw the pair finally break that line, which could be a big positive for the Sterling this year even if risk was to suffer. We will look for this line to provide some support even if the pair where to lose its bid as we see it is a steep slope. Some short-term resistance on the pair could be seen at the 200day moving average currently situated in the 1.55 handle and then the 100 week above that which has not been penetrated since the summer of 2008.

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