Price action on GBP/USD, a daily chart of which is shown, has once again descended to approach key support in the important 1.5000 price region. This occurs within the context of a strong overall downtrend. The entire current week has thus far been characterized by marked bearishness after having descended from the 1.5350 region resistance.
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(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
The technical bias on this currency pair continues to be bearish in line with the current prevailing downtrend. A key event to watch for would be a strong breakdown below the noted 1.5000 price region, in which case price could potentially target significant downside support in the 1.4800 price region, which represents the level of the previous long-term double-bottom low.
By James Chen, chief technical strategist, FXSolutions.com
