British Pound Technical Outlook

Published September 23rd, 2008 - 06:16 GMT
Al Bawaba
Al Bawaba

There is no reason to alter the bullish view but watch for resistance near 1.878.  This is the confluence of the 38.2% of the entire decline from 2.1160 as well as daily highs from August.  Not shown on the chart is a Fibonacci extension at 1.8815. 



In summary, expect strength to continue into roughly 1.88, but then the GBPUSD will be vulnerable to a wave iv corrective decline.  Price should remain above 1.8280.