British Pound & Gold
October 28, 2011 - Chart of Gold in British Pound -
£-Gold | |
Bullish Objective | £ 1220 |
Resistance | £ 1090 - £ 1160 |
Support | £ 1070 |
Bearish Objective | £ 1000 |
Technical Pattern | uptrend intact |
"Fortunes to be made and fortunes to be lost...Off course, those who (as advised) converted their paper Pound holdings into Real Sterling or Gold, have (like Iceland people were) been saved of this massacre."
Daily Candle October 10 | Chart comment | |
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Weekly candle October 10 | ||
Updated October 28 - in 2009 the £ was devaluated by 30% and now seems to be pegged to the Euro -
£/€ | £/$ | |
Bearish Objective | € 1.04 | $ 1.70 |
Resistance | na | $ 1.55 |
Support | € 1.10 | $ 1.40 |
Technical Pattern | sideward | potential bullish HS formation |
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Short term candle - October 10 |
Chart comment |
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Long term candle October 10 | ||
Britain will at some point default on its debts to foreigners (as it has done at least twice before), this is INEVITABLE because ALL countries eventually DEFAULT on their debts, it is only a question of when i.e. in the next few years or delay bankruptcy for many decades and therefore results in the relative risks of default which the market prices. INFLATION is a symptom of the trend towards bankruptcy as it is a measure of the continuous COMPOUNDING loss of purchasing power of the currency. The best that governments such as Britain have been able to achieve is the slow stealth trend towards bankruptcy where people don't realize the loss of purchasing and wage earning power over time. However with government debt heading towards 100% of GDP, Britain looks set to leave the stealth trend towards bankruptcy behind and about to accelerate a few notches higher which risks igniting a wage price spiral that ultimately ends in a hyper-inflationary bust. |
Updated October 28, 2011 - British Pound and US Dollar
Expect to see 2 = £ 1 again...........