The British Pound ($XBP) made historical lows this morning.
While this chart is trying to find support at the $136 level, there is no doubt that we are experiencing a moment in time that could mark a significant long-term trend change. This chart is very similar to the $CRB chart which also broke a 46-year support level earlier in the year. When big things change, it can mark historic turning points. From a macro perspective, we now have two charts that have snapped in 2016. The $CRB has rallied back above which is not a surprise.
As technicians, we should be on notice that large macro changes are taking place and we have to look for causality and the domino effect. This should be in the back of our minds as we look for investing opportunities.
Greg Schnell, CMT, MFTA