It looks like if the pound is undergoing a substantial devaluation due to fundamental changes of the market view towards it.
Trade closed: target reached
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I am taking the fine profit expecting a temporary retracement.
Comments
sinakhan98
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devaluation? interesting!
What happened last time gbpaud was around 1.45? What makes this time different?
thanks!
motleifaul
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You are welcome. The GBP is developing for decades. The rebound since 2012-2013 is a technical retracement from the 2.71 $ level in 2008 only.
You see a similiar picture when ou look at GBPUSD. The pound built a bottom since 2001, over 15 years! This bottom has been broken now in mid 2016. This should lead to a more substantial decline now. Somebody may even see a Head-and-Shoulder pattern with the neckline at 2001 and 2009. Same is with EURGBP where the downward cannel having existed since 2008 has been broken in September at least. This all is indicating to a more than tactical weakness of the pound.
As for GBPAUD you better don't look at the level 1.45 but compare with the development in the time from August 2002 until October 2008. The impressive spike at the latter date is to be seen as a technical correction as well. After this the pound fell for more than 1 $!
Fundamentally? I think I don't need to explain the present uncertainty.
Haslokhe u brokhe!
What happened last time gbpaud was around 1.45? What makes this time different?
thanks!