Chart of the Day

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(Chart courtesy of FX Solutions' FX AccuCharts. 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.)

8/31/2010 – GBP/USD – Price action on 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.

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Published On Tue, Aug 31 2010, 15:16 GMT

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