I would like to share my longer term look at USDGBP , understand its future movements and relate the movement in this pair to other and gold .
USDGBP collapsed from 2.11 to 1.35 in 2008 in a large impulsive A wave. What followed after was a multi-year congestion in which we continue to reside today. The whole range of 1.40..1.70 however is a corrective movement and eventually needs to be fully retraced by a larger degree trend (which is still down). The congestion is still incomplete, and today we are in its most recent leg, shooting up from 1.456. This movement should complete the complex of nested flats and zigzags, which should mark the end of B wave.
The impulsive down-looking C wave is still missing, and we need to see another round of GBP collapse once the upward movement is over.
My estimate is that we will reach 1.65 or possibly even 1.70 in B wave, then will move down to 1.23 or lower based in the proportions shown on the chart.
Those movements will happen most likely in correlation to other , so I supplied some comments on the possible levels of other at the turning points on the chart.
Enjoy! And may the golden bars be with you!