Chart of the Day

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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; 200-period simple moving average in light blue.)

7/31/2008 – GBP/USD – Price on the GBP/USD (a 4-hour chart of which is shown) shot up on Thursday morning to hit a significant resistance point that combines the top of a new short-term downtrend channel (in red) and the underside of the previous short-term uptrend channel (in green) which price broke below within the past several days. After the quick bullish move on Thursday morning, price came back down swiftly, retracing most of the original rally as of this writing. Any continued bearish action should first find some support near the bottom of the red downtrend channel. A rebound, on the other hand, should eventually target the top of the same channel once again.

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Published On Thu, Jul 31 2008, 15:58 GMT

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