Dollar Set for Further Collapse Against Sterling?

Hi,

Here is an interesting long-term Elliott Wave Forex chart of Sterling against the Dollar. For anyone hoping that Dollar weakness was coming to a close, this chart is set to disappoint you…

Forex: Sterling Dollar Long Term Chart

The fiery colored bands on the righ-hand side show potential target levels that Sterling/Dollar is expected to reach. What is interesting and somewhat disturbing is that these bands also represent the most likely Elliott Wave alternative wave-counts. Basically, there don't seem to be ANY that point to dollar strengthening in the long-term.

The US Dollar is currently at 2.06 against the Pound as I write this. This chart is looking for 2.35-50. Perhaps that sounds absurd? I can only tell you that when I first ran this chart quite a few months ago, we were at 1.92 against Sterling and the prospect of 2.06 might have seemed ambitious then. Yet, here we are.

Given the strained nature of US resources in the world these days, I don't see this as being as absurd as it sounds. This is clearly a long-established and strong trend that shows absolutely no sign of turning as yet from a technical perspective.

Asoka Selvarajah