The Sinking Pound

**Frosty** · 23-07-2005, 17:30

What a sad picture this is.[msncry]

Where will it end and what about all that talk of a $2 pound!!

**Robert5988** · 23-07-2005, 17:37

For some of us it is great news!

**chrizzy100** · 23-07-2005, 17:38

I see my holiday in England with my grandson becoming more real every day......going down to $1:50 would be nice.......

**luckylady** · 23-07-2005, 19:56

If it goes down to $1:50
We will have to consider selling up seeing we bought both homes when the exchange rate was above $1;85
Good luck to anybody selling their homes at the moment and exchanging into Engish Pounds

**abbeyvillas** · 23-07-2005, 20:30

Just about to order the 'spending money' for the forthcoming trip until I found out how the $ rate had dropped. $1.67 to the £ today.[:O]

Now am not sure what to do for the best. Are you are better off to withdraw cash from the ATM when you get there? I'm not sure how it works.[confused]

23-07-2005, 21:29

1.70 on Travelex[msnscared]

wrpac00 · 23-07-2005, 21:51

A friend of mine on another forum is well into this and he posted this today: -
Watch $1.7875 up for a change in trend but personally, I'm expecting the slide to continue to around the $1.66 mark and if that's broken with any conviction, then I see nothing on my charts in the form of support lines until we get to the major level of $1.56 so strap yourself in for the ride.

Don't undersatand what it means exactly (he mentions bulls and bears) but it down sound like good news especially as you say there was talk of it breaking the $2 to the £ barrier, they seems so long ago now.

**Katys Grandad** · 23-07-2005, 22:18

<blockquote id="quote" class="ffs">quote:Originally posted by wrpac00
A friend of mine on another forum is well into this and he posted this today: -
Watch $1.7875 up for a change in trend but personally, I'm expecting the slide to continue to around the $1.66 mark and if that's broken with any conviction, then I see nothing on my charts in the form of support lines until we get to the major level of $1.56 so strap yourself in for the ride.

Don't undersatand what it means exactly (he mentions bulls and bears) but it down sound like good news especially as you say there was talk of it breaking the $2 to the £ barrier, they seems so long ago now.
[/quote]

Your friend appears to be what is known in the investment game as a 'chartist'. They try to predict price movements using historical data. The basic theory is that markets just follow trends over and over again irrespective of other factors so you can make money on that basis.

What he is saying is that the charts show the £ on a trend downwards unless the $1.7875 point is reached again, then it can be said that the trend has turned around and is now upwards towards the levels we have seen over the last few months. However, he believes that the downwards trend is firmly set and that, if the $1.66 point is reached, it is so strong in a downward direction that much lower levels are inevitable.

Trouble is that you will find just as many chartists employing the same data to predict the exact reverse!