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will british pound bounce back up ?

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tatu | 12:47 Sun 23rd Nov 2008 | Business & Finance
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no one has a crystal ball i know that,but i would like to hear from someone who is more knowledgeable than me about money markets and such.....do you think the pound will get stronger and when ? what will the signs be when it is ready to go up again?

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If you look at the GBP exchange rate over a longer period, say 5 years, the GBP has a stable range against the Euro.

From 2004 - early 2008, the GBP was between 0.66-0.71 to the Euro.

Currently, it's around 0.86, so you need a lot more GBPs to buy the same number of Euros.

But this is not a stable position.

The market has been unsettled by concerns over the economy, of course. But also, there has been a lot of panicky speculation by foreign exchange dealers, and short traders. This has created a blip.

But if the recession is global, all economies will eventually settle back to a sustainable position, and the GBP should creep back up to nearer its old position.

I'd suggest ... don't sit on a large Euro position, and don't forward buy Euros at the current value. Hang on to your GBP. Or, if you are holding Euros, sell them forwards.
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Dunno.

I don't have to buy or sell $s, so I know nothing about the market.
Take it with a pinch of salt but I did hear one currency dealer on the radio predicting a $1-20 pound within 6 months before starting to rise again.
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thanks guys,,,jake i didnt get ur meaning there? can u go again,cheers.
As of today GBP/USD intraday: intraday support around 1.495.
The pair is expected to bounce off a bullish channel support.

Traders can note liquidity is only moderate and still on the lower side. Aggressive traders can look to buy the next dip.
Present market scenario is too bad to predict anything at all, IMO.
No need to get technical. The pound will be strong again one day and the dollar will be weak. When? Who knows? The rate was recently about $2 : �1 now it has collapsed. And it may collapse more - but this will reverse one day. The bigger question is will the $US remain the preferred reserve currency? Or will a future US government borrow so much the dollar collapses?
Yes, it will get stronger, but when is just pure guesswork.
Seems likes you are trying to profit from it by asking whether there will b e a bull run. Anyway i think only professional services like https://www.tradefxplus.com/amember/go.php?r=5237&i=l1 have the answers. They have to spend their time monitoring the market which is why they should be the best people to ask.

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