• August 12: expect resistance, consolidation or correction

• August 19 - 23: breaking through the top of the trend channel...and acceleration but the GOLD POOL showed up and the selling pressure was HUGE..

• August 26: physical buyer are stronger than the Gold Pool.

• October 28: back off the bottom of the uptrend channel...expect a steady bull run all the way into 2012...and remember nothing goes up in a straight line.

• Britain on the Path to Bankruptcy. This is clearly visible on the £ Gold chart. British citizens must be holding on to Gold. Britain's deficit is one of the worst in the World...click here for more....

• There is a dangerous BEARISH triangle/wedge/flag building on the €-Sterling chart which can take the British Pound 'a lot lower' !!!

• Will the Pound resume its role a the canary in the mine shaft and precursor for the Dollar?

Short term candle - October 10

Chart comment

• April 18: still in a bear trend: SELL

• May 6 - 20: the Sterling fell "out of a box" and is now testing its stop loss level.

• June 1: bear trend resumed.

• July 8: oversold

• July 18 - 26: falling out of the bearish flag.

• August 11 - 26: bumping into the 200 day Moving Average = resistance and SELL level.

• September 16 until October 28:  further sideward action
  

Britain will at some point default on its debts to foreigners (as it has done at least twice before), this is INEVITABLE because ALL countries eventually DEFAULT on their debts, it is only a question of when i.e. in the next few years or delay bankruptcy for many decades and therefore results in the relative risks of default which the market prices. INFLATION is a symptom of the trend towards bankruptcy as it is a measure of the continuous COMPOUNDING loss of purchasing power of the currency. The best that governments such as Britain have been able to achieve is the slow stealth trend towards bankruptcy where people don't realize the loss of purchasing and wage earning power over time. However with government debt heading towards 100% of GDP, Britain looks set to leave the stealth trend towards bankruptcy behind and about to accelerate a few notches higher which risks igniting a wage price spiral that ultimately ends in a hyper-inflationary bust.

Short term candle October 10

Chart comment

• June 1: steady staircase uptrend.

• July 18: Pound is overbought against the US Dollar..

• July 26 - August 26: but is bouncing off the 200 day Moving Average = very bearish for the US Dollar.

• September 16: the long term candle chart of the British pound is extremely bullish implicating a WEAK dollar..

• September 22: British Pound fallen in STOP LOSS against the Dollar.

• October 10: 1.60 must be tested to confirm trend reversal.

• October 28: note the HUGE formation in the make....