Chart of the Day
GBP/USD Daily Chart — September 24, 2009
By
James Chen
, Published:
9/24/2009
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)
9/24/2009 – GBP/USD – Prolonged consolidation on GBP/USD, a daily chart of which is shown, has assumed a substantially more bearish bias than the euro against the dollar. This can be seen in the significant jump that the key EUR/GBP cross has made as of Thursday (9/24/2009). In the case of GBP/USD, the immediate event to watch for would be a strong breakdown below 1.6100 support, in which case the 1.5800 price region would be a clear further support target to the downside. Like other major currencies against the U.S. dollar, GBP is still entrenched within an overall uptrend, but this could very well be in jeopardy on GBP/USD if the pair continues to lose ground. Upside resistance continues to reside in the double-tested 1.6740 price region, which serves as the approximate upper resistance border of the current prolonged trading range.
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James Chen, CMT
Chief Technical Strategist,
FX Solutions
Chief Technical Strategist,
FX Solutions
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