The sterling Gold price has been falling as sterling has rallied 22% against the dollar, so we have been in a correction phase which I expect to come to an end soon.
The chart support comes in from £570 to £550 which
should be great location for resetting longs, looking for a move back to the highs around £700 as Gold rallies & outpaces the currency drag effect.
GBP/USD 1.6660 was a 50% bounce from the Aug08
down move - a short covering rally that should be complete now. Any problems going forward for the dollar ( and there are plenty) should be replicated with the UK as well, so I expect the big trend moves in cable are over and 1.40 - 1.65 range is a realistic consolidation range.
happy trading ..........
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