Reply to: The £ again

[Purple Dalek]

Looks like my prediction was correct

Yes, it's going down faster than a whore on a performance bonus.

[SantaClaus]

Its sinking fast cap'n. Hold on to your martinis because the coctail bar of the Titanic will be the first to hit the iceberg.

On the GBPUSD, we will no doubt see the November low of 1.4558 before midday tomorrow. I am sure the markets are pricing in a huge interest rate cut.

After that, next stop 1.4070 and then the year 2000 low of 1.3680.

Looks like my prediction was correct

[SantaClaus]

Yes, I don't believe in TA either. It looks pretty in retrospect, except the bits where you needed it.

I'm making some very nice money from TA thank you very much

Just trade in the direction of the fundamentals, i.e. down for the pound and sell at confluence of fibonacci retracements, pivots, support/resistance.

Any run up is a selling opportunity

[BrilloPad]

I think his point was that there is the bigger picture to see here, rather than your two weeks in torremolinos BP.......

f**k that.

And I'll have you know this year I am going upmarket - its the Costa Brava for me.....

[Pickle2]

So you are not going abroad on holiday any time soon then?

I think his point was that there is the bigger picture to see here, rather than your two weeks in torremolinos BP.......

[Flashman]

So you are not going abroad on holiday any time soon then?

If the worst thing that happens to you this year is paying more for your holiday then you've had a pretty good year.

[DiscoStu]

So you are not going abroad on holiday any time soon then?

Nooo! I'll never be able to afford a cheap US shopping trip again!

Great minds

[TimberWolf]

The sooner we get to $1 = £1 the better.

That's been the exchange rate for some time now, from what I've noticed when looking at prices from across the pond, i.e. something that costs $1 is the US, costs £1 here.

[DiscoStu]

The sooner we get to $1 = £1 the better.

Companies like Land Rover and Jaguar depend heavily on US sales. The fall in the value of the £ will give the opportunity to discount heavily and might just be enough to save them.

Die £ Die!

Nooo! I'll never be able to afford a cheap US shopping trip again!

[BrilloPad]

The sooner we get to $1 = £1 the better.

Companies like Land Rover and Jaguar depend heavily on US sales. The fall in the value of the £ will give the opportunity to discount heavily and might just be enough to save them.

Die £ Die!

So you are not going abroad on holiday any time soon then?

[Flashman]

Business is War.

The sooner we get to $1 = £1 the better.

Companies like Land Rover and Jaguar depend heavily on US sales. The fall in the value of the £ will give them the opportunity to discount heavily and might just be enough to save them from going out of business entirely

As the Euro and $ seem to be tracking each other. BMW, Mercedes etc will be unable to do the same

Die £ Die!

[BlasterBates]

There are support lines under Sterling or most currencies for that matter and if it drops below the stop loss will kick in. One can argue that is stupid but that's how crashes occur on a regular basis.

Currencies such as $ or EUR probably don't have these crash lines, as they are reserve currencies.

It isn't as stupid as you might think. Investors can and are prepared to take a hit, however there is a point where they pull out, even with losses as they consider better to have enough resources to take a new bet on the market, than basically go bankrupt or end up with a liquidity problem. This is the reason for the massive sell offs.

[ace00]

Yes, I don't believe in TA either. It looks pretty in retrospect, except the bits where you needed it.

Yep, actually it's a useful tool, but relying on it exclusively is just stupidity.
Answer previous question it is mis-typed, short for £1 =$1.3750.
And OP - most of the decline has happened - $2 -> $1.47
But a catastrophic run is a concern.

[expat]

However a break below £/$137.50 would target parity to the US Dollar, which will mean a 50% loss in the value of all assets for the duration of the bear market to parity and likewise 50% rise in the price of dollar imported goods and services and to a lesser degree from other countries, therefore highly inflationary.

Technical analysis I presume.
What a complete load of idiotic garbage.

Yes, I don't believe in TA either. It looks pretty in retrospect, except the bits where you needed it.

[d000hg]

What does "£/$137.50" mean? I didn't any of that stuff about breaks either... translation anyone?