The Pound fell through its supporting lines on very heavy volume, bottoming at its lowest price in more than 20 years. Taking out 20 year lows screams danger. We have since rallied on heavy volume, but decreased daily price range. Today we had the smallest spread from high to low in 9 days and high volume at the resistance line. Supply was overcoming demand. Given the fragile condition of this currency, another crisis could be looming.
Wednesday, January 28, 2009
British Pound
The Pound fell through its supporting lines on very heavy volume, bottoming at its lowest price in more than 20 years. Taking out 20 year lows screams danger. We have since rallied on heavy volume, but decreased daily price range. Today we had the smallest spread from high to low in 9 days and high volume at the resistance line. Supply was overcoming demand. Given the fragile condition of this currency, another crisis could be looming.
