Forex Trading Technical Analysis (2010/08/06) GBP/USD Establishes 6-Month High Around 1.60
(Please click on the forex chart thumbnail to enlarge)
8/06/2010 Forex Trading Technical Analysis (FXpath.com) – GBP/USD (a 4-hour chart of which is shown) as of Friday (8/06/2010) morning, has reached all the way up to approach key psychological resistance in the 1.6000 price region on the heels of the non-farm payrolls (NFP) report, establishing a new 6-month high for the pair. This occurs within the context of a strong overall uptrend extending back to the May lows. It also occurs after price action accelerated its uptrend by breaking out above the upper border of a strong parallel uptrend channel, hitting a high just shy of 1.60, and then retracing back down to near 1.5800 support. GBP/USD currently continues to carry a bullish bias. In the event of a strong subsequent breakout above 1.6000, price could potentially go on to begin targeting further upside resistance in the 1.6250 price region. Downside support on the current bullishness continues to reside around the noted 1.5800 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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Excellent analysis. I agree, the Cable still looks strong. But it may take a few attempts to go beyond 1.6000.