Mon, Oct 6 2008, 16:20 GMT
by James Chen
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance level in yellow; 50-period simple moving average in light blue.)
10/06/2008 – GBP/USD – The continued plummet on the GBP/USD daily chart, as shown, has just made a new two and a half year low on this key pair. In the process, price has broken one major support level after another, including an important recent support level around the 1.7450 region. At this point, there appears to be very little in the way of a definitive bottom in sight. Although oscillators like the displayed Stochastics are heavily oversold, in a trending situation like what we are seeing now this oversold indication could be in effect for quite some time while price potentially continues its sharp plunge. Even with the inevitable minor retracements and consolidations, in the event of a downward continuation two historical support/resistance levels reside relatively nearby to the downside. The closest is in the 1.7230-1.7250 zone. Below that is the 1.7050 support region, which was last hit in late 2005.
* Visit my forex tips and techniques blog here: http://fxpath.fxstreet.com *
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
Published on Mon, Oct 6 2008, 16:22 GMT
FX Solutions, LLC
| Saddle River Executive Centre 1 Route 17 South, Suite 260 Saddle River, New Jersey 07458
http://www.fxsolutions.com | info@fxsol.com
U.S. Forex Market Commentary by GCI
Mon, Dec 1 2008, 22:25 GMT
Daily Forex Technical Report by ActionForex.com
Mon, Dec 1 2008, 15:38 GMT
Currency Majors Technical Analysis by Mataf.net
Mon, Dec 1 2008, 14:30 GMT
Daily Market Report - The British pound depreciated by 2% against the US dollar after the release of dismal UK manufacturing by Wachovia
Mon, Dec 1 2008, 13:31 GMT
London Gold Market Report by BullionVault.com
Mon, Dec 1 2008, 13:21 GMT
ANALYSIS-Any UK euro entry bets to show up in FX, bond prices
Thomson Financial News | Mon, Dec 1 2008, 16:29 GMT
UPDATE 2-UK says in talks with banks on strategy, boards
Thomson Financial News | Mon, Dec 1 2008, 15:19 GMT
2nd UPDATE: UK Oct Net Lending Drops To GBP1.3B, Mtges Slump
Dow Jones | Mon, Dec 1 2008, 14:23 GMT
UPDATE 1-Total UK refinery output below normal at weekend
Thomson Financial News | Mon, Dec 1 2008, 13:49 GMT
WRAPUP 1-Dire factory, lending data fuel UK rate cut bets
Thomson Financial News | Mon, Dec 1 2008, 12:34 GMT
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]