Chart of the Day: GBP/USD
09/26/2008 12:00 am EST
Price action on the four-hour GBP/USD chart, as shown, is currently languishing in somewhat of a sideways consolidation, much like other major currency pairs. As of Friday morning (New York session), price has been hugging a relatively well-defined uptrend support line (in green) after falling down off of a significant downtrend resistance line (in red). This downtrend line should continue to serve as resistance in the event of a pronounced bounce up off the current uptrend support. In the event of a breakdown of the current consolidation, below the uptrend support line, key immediate support to the downside resides around the 1.8260-1.8270 zone.
By James Chen of FXSolutions.com
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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)