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Pound to head lower

Having got above $1.60, the pound failed to sustain itself above that level, and quickly reversed bearishly, says Matt Shaw at www.financialtrading.co.

Any further attempt on this level is likely to end the same way, in my view. I firmly believe that we are gearing up for a bearish head-and-shoulders top around $1.60-$1.605, pending a drop below $1.58.

City Trades are written by selected external contributors and are based on the interpretation of patterns on a share price chart, rather than on fundamental analysis of the company's business or prospects.

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By Matt Shaw,
19 April 2012

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