Will history repeat itself

• kevinmhughes
• December 21st, 2009

When it comes to the $GBPUSD, the $USDX has been$GBP’s little cabana boy in the sense that the $USDX has really never been stronger than the $GBP.  Only on an intraday basis has it been stronger & as day traders, that is really the only thing we look at.

I do believe that the $GBPUSD will weaken over the next couple of months.  Based on the monthly chart (below), we should anticipate a test of the ‘newest’ low created in 2001 (era).  It has bounced off of those lows & did it back in January (right around the time the equity markets were ramping up for a rally).  We will probably see the 1.4000 area again, most likely by the middle to end of summer.

The chart is below & my opinion is based on purely technicals (the way I trade anything).  Let me know what you think.

**Disclaimer**  I am currently short the $GBPUSD

Kevin Hughes is the President of K.M. Hughes & Associates, Inc. which is a currency trading firm,  based in Charlotte, NC.  For more information about the firm please visit www.hughesincorporated.com

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Tickers: $USDX, GBP, GBPUSD

blog comments powered by Disqus