Forex Trading Technical Analysis (2010/08/31) GBP/USD Potentially Targets 1.5200 Downside
(Please click on the forex chart thumbnail to enlarge)
8/31/2010 Forex Trading Technical Analysis (FXpath.com) – GBP/USD (a 4-hour chart of which is shown) as of Tuesday (8/31/2010) has dropped to approach support in the 1.5350 price region. This occurs within the context of a relatively choppy descent from the 6-month high just under 1.6000 reached in early August. This descent has formed a clear downtrend resistance line extending back to the mid-August high. In the event of a strong breakdown below the noted 1.5350 support, a continuation of the new downtrend will have been confirmed, with a key downside support target in the 1.5200 price region. Dynamic upside resistance within the context of the current downtrend continues to reside around the noted downtrend resistance line.
(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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