In forex, the markets are watching a fixed game with the USD/Chines yuan (USD/CNY), leaving plenty o...
Clear Trading Opportunity in GBP/USD Currency Pair
07/09/2009 12:01 am EST
Click to Enlarge
(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.)
Price action on GBP/USD, a daily chart of which is shown, has continued its substantial bearish bias since the pair broke down below a key uptrend support line extending from a late-April low.
Currently, the bearishness is showing little sign of abating, and clear support targets to the downside include another uptrend support line, this one extending from the March low, as well as the 1.5800 horizontal support level.
At the current time, these two support factors are approximately coinciding. To the upside, key short-term resistance in the context of the current bearishness resides around 1.6200, or the previous short-term support level.
By James Chen, Chief Technical Strategist, FX Solutions
Related Articles on FOREX
The barometer of risk-on and off has usually been the Japanese yen (JPY) but today, the break of 1.1...
The euro (EUR) and USD may be the headlines but the breakout for diving in risk naked is probably eu...
The bid to the USD means trouble for risk even as equities hold big gains from Asia and Europe follo...