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.)

9/07/2010 – GBP/USD – Price action on GBP/USD (a 4-hour chart of which is shown) as of Tuesday (9/07/2010) has tentatively broken down below the previous major low of 1.5325 hit in late August to establish a new 6-week low just below 1.5300. This occurs within the context of a new potential downtrend extending back to mid-August, and is represented by a key downtrend resistance line. In the event of further bearishness off the current breakdown, price should target further downside support in the 1.5200 price region, followed by a key psychological support target in the important 1.5000 area. Dynamic upside resistance continues to reside around the noted downtrend resistance line.

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Published On Tue, Sep 7 2010, 16:00 GMT

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