Forex Trading Technical Analysis (2010/08/03) GBP/USD Due for Correction
(Please click on the forex chart thumbnail to enlarge)
8/03/2010 Forex Trading Technical Analysis (FXpath.com) – GBP/USD (a 4-hour chart of which is shown) as of Tuesday (8/03/2010) has been in clearly accelerated uptrend mode since yesterday when it broke out strongly above the top border of an already-steep parallel uptrend channel extending from the May lows. In breaking and accelerating above this channel, price action also broke out above 1.5800 resistance. Since this breakout, price continued to move up to consolidate under the key psychological 1.6000 round figure. As price has recently accelerated far into overbought territory, a bearish correction within the current uptrend could be impending. Support in the event of this correction initially resides around the broken 1.5800 price region. However, a strong breakout above 1.6000 could go on to begin targeting further upside resistance in the 1.6250 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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