Forex Technical Analysis (2010/06/23) EUR/GBP Bearishness Around Support
(Please click on the forex chart thumbnail to enlarge)
6/23/2010 Forex Technical Analysis (FXpath.com) – EUR/GBP, a daily chart of which is shown, has been deeply entrenched within a steep downtrend since the early March highs. On Wednesday (6/23/2010), price just established a fresh 19-month low right around strong support in the key 0.8200 price region. This level was just double-tested around two weeks ago. Considering the significant bearishness that this currency pair continues to exhibit, a breakdown below 0.8200 is a potential near-term scenario that would confirm a continuation of the strong current downtrend. In the event of this breakdown, a key further support target to the downside resides around the important 0.8000 figure. Upside resistance within the context of the strong downtrend continues to reside around the 0.8400 price region.
(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.)
James Chen, CTA, CMT (bio)
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Good chart. I am short EUR/GBP, and looking for lots of downside.