British Pound: RELATIVELY Strong …

By: Black_Swan

We’ve been dogging on the pound for a series of months now. And for the most part, we expect to be dogging on it for months to come. Basically, weak economic data points are going to weigh on Bank of England and their interest rate policies. That, in turn, should undermine the pound. But ...

We could be on the brink of a major (or somewhat major) turn in the euro. Fresh off highs versus the dollar, pound, and yen, the euro is in need of a major cool down. If the cards fall right, this euro swing could come very soon.

So if you’re looking for a way to get in against the euro, but you’re too skeptical of a dollar recovery, then maybe you look to the British pound.

We’ve got one word to describe the above chart of the euro versus the pound: nosebleed. If investors become legitimately concerned with the outlook for the euro, the British pound could easily make good on the shockwaves.

This pair has run awfully nine or ten months. It looks as though there’s plenty of room remaining for a reasonable correction. The 7600‐level appears to mark the spot.

Jack Crooks

Black Swan Capital LLC

http://www.blackswantrading.com/

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