Flag Breakout (2010-05-29 GBP analysis)

Going on exchange to London next semester, I have been keeping an eye on GBP to find a good price to get myself some pounds for the next few months. My bias would be at around 1.40, which is at around 10.89 HKD. The breakout of flag yesterday further enhanced my prediction.



Sterling has been keeping at the uptrend line well these days, however, there was a breakout yesterday. It is now on the 23.6%-line, but I would expect a further plunge next week due to the cut of ratings of Spain by Fitch and a worry that UK would be the next. Although the two day-offs would be kind of relaxing for this worry, there might be more rating cut by other rating companies and the worry would remain.