Thursday June 12, 2008 - 15:07:32 GMT
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Chart of the Day - 6/12/2008 - GBP/USD
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; downtrend line in red; horizontal support/resistance level in yellow; 200-period simple moving average in light blue.)
6/12/2008 â€“ GBP/USD â€“ Price action on the GBP/USD 4-hour chart, as shown, is approaching a very significant horizontal support level. This level resides around the 1.9350 region, which has been well-respected by at least three very precise bounces since the beginning of the year. In general, price on this pair has been consolidating for some time now, with diminishing volatility (as is evident by the converging trendlines). Barring any fundamentally-driven breakdown of the strong support found at 1.9350, technical traders are waiting for a further move down to make yet another potential upturn at or near this support. Oscillators like the displayed Stochastics appear to be supporting this outlook, as the lines are just approaching oversold. If this scenario indeed occurs, a major resistance level to the upside resides around the 1.9600 region, which has served as a significant support/resistance level in the past.
Chief Technical Analyst
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