The British Pound Approaches Support

The British Pound has been selling off rather sharply over the past 2 months but is now approaching a significant area of support. If you measure the rally from July 2001 to the high made in 2007, you will see that we are now at the 50% retracement level. The Pound is also approaching the low that was made in 2005 which turned out to be a major support area. It will be interesting to see how this currency handles this significant zone of support in the weeks to come.