Forex Trading Technical Analysis (2010/08/25) GBP/USD Bearishness Hesitates Above Support
(Please click on the forex chart thumbnail to enlarge)
8/25/2010 Forex Trading Technical Analysis (FXpath.com) – GBP/USD (a daily chart of which is shown) as of Wednesday (8/25/2010) has hesitated after approaching key 1.5350 region support on the heels of almost three weeks of bearish price action that broke down below a key uptrend support line and just established a new one-month low for the pair. This strong support area coincides approximately with a 38.2% Fibonacci retracement level of the bullish trend run from the long-term low just above 1.42 to the high near 1.60. Currently, GBP/USD continues to carry a bearish bias. In the event of a strong breakdown below this 1.5350 area support confluence on continued bearish momentum, price action could target further downside support in the 1.5120 price region, which also coincides approximately with a 50% Fibonacci retracement of the noted bullish trend 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