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Chart of the Day - 7/24/2008 - GBP/USD

24-07-2008 - FX Solutions  |   Forex Technical Analysis
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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, SlowStochastics on 2nd pane; downtrend line in red; uptrend lines in green;horizontal support/resistance line in yellow; 50-period simple movingaverage in light blue.)

7/24/2008 – GBP/USD – As of this writing, price action on the GBP/USDdaily chart, as shown, has just reached down and touched the bottomsupport line of a short-term parallel uptrend channel (in green).Currently, price has stalled and consolidated near this support level.It should be noted that this uptrend channel is very steep, andtherefore may likely be broken to the downside at some point in thenear future. Whether that occurs on this swing or a future downswing isthe question. There has also been very clear bearish price-oscillatordivergence on the prior two swing highs. In the event of a trueimpending breakdown of this uptrend channel, major support to thedownside resides around the 1.9650 region. Below this level, furthersupport resides around the long-term downtrend line (in red) thatextends from the multi-decade highs. A clear bounce off the currentuptrend support line, on the other hand, should target resistance onceagain near the top of the parallel trend channel.


James Chen
Chief Technical Analyst
FX Solutions
Content Provided by:
FX Solutions
FX Solutions, LLC was founded in 2001 by two foreign exchange veterans with over 50 years combined experience. The Company is a leading online foreign exchange (forex) broker, operating as a market-maker to retail and institutional clients. With its focus on advanced trading technology solutions, th...
 
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