Forex Trading Technical Analysis (2010/08/09) GBP/USD Poised Under 1.60
(Please click on the forex chart thumbnail to enlarge)
8/09/2010 Forex Trading Technical Analysis (FXpath.com) – GBP/USD (a 4-hour chart of which is shown) as of Monday (8/09/2010) has consolidated under key 1.60 psychological resistance, thus far unable to breakout out above the 6-month high established on Friday. The bullishness of the last several months has propelled this currency pair from the 1.4227 low in May to the current highs just below 1.60, for more than a 12% rise in price in less than 3 months. The overall directional bias on this pair continues to be to the upside, and a significant breakout above 1.60 would confirm that bias. Within the context of the strong current uptrend, downside support continues to reside around the 1.5800 price region, while a key upside resistance target on any breakout above 1.6000 resides around the 1.6300 price region, which is a key Fibonacci extension of the most recent major bullish run.
(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)
- Click here for my book, Essentials of Foreign Exchange Trading (Wiley).
- Click here for my book, Essentials of Technical Analysis for Financial Markets (Wiley).
- Click here for my video DVD set, High-Probability Trend Following in the Forex Market (FXstreet).
No related posts.
Please leave a comment below or subscribe to the feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment