Pound returning to test the moving average, but what next?

As I have previously stated, I think the Pound has entered a period of decline when measured against the US Dollar. (Most recently, here.)

To recap though, my expectation is that the Pound will rise to retest the downtrending 50 or 200 day moving average, before most likely resuming a sustained downtrend, possibly to much lower levels. Or perhaps return to the moving average lines and cut straight through them to signal yet another change of trend, only time and the charts will tell.

Today we can see the Pound has indeed turned up, and this has been noticed by Angela Monaghan at the Telegraph too.

It will be very interesting to watch that chart in the coming days, to see which way the wind is probably going to blow for Ye Olde Pound in coming months. Watch that space.