Forex - British Pound

I'd like to take a long term view of the British Pound to help put things into perspective. In the above chart you will notice that the rally which began in January of this year has abruptly stopped dead in its tracks at the 170.00 level. What is so significant about the 170 level? Well if you look back a few years you will notice that a major low was made in Novemeber 2005. This low is now playing as resistance and is why the British pound has stopped at this level.

My personal opinion is that the British Pound will rally due to the 8 year cycle which indicates that this currency should be in an uptrend for the next several years. Having said that, I will look for buy signals to position myself in the direction of the major trend.