How sterling can hit $1.83 again

Sterling vs US dollar (FX:GBPUSD) 

This particular odd couple continues to display some rather strange potentials. Last time we ran the numbers we’d proposed a target of $1.40 initially. This was achieved at the end of January, so we’re justified in shaking the tea leaves again.

What’s proving interesting is the potential should the pairing now manage above $1.434 – the prior high – as it becomes difficult to ignore the potential of $1.53 now making its presence felt.

Rather importantly, this breaks the pairing above the downtrend since 2007 and opens the floodgates for future strengthening toward $1.83, a number we really did not anticipate mentioning.

Currency Top Trumps: What’s on the cards for pound vs dollar?

To trash optimism, the relationship requires to founder below the light blue line on the chart, currently lurking at $1.31 as a reversal cycle toward $1.22 becomes painfully probable. Our secondary, in the event such a level breaks, comes along at $1.09 – below the red uptrend since 1984 and opening the doors for parity and worse.

Thankfully, both the US and the UK are led by skilful, charismatic, competent, politicians who shall doubtless prove up to the challenge.

Source: Trends and Targets     Past performance is not a guide to future performance

Alistair Strang has led high-profile and “top secret” software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know “how it worked” with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

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