Thursday July 24, 2008 - 14:56:18 GMT
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Chart of the Day - 7/24/2008 - GBP/USD
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow
Stochastics on 2nd pane; downtrend line in red; uptrend lines in green;
horizontal support/resistance line in yellow; 50-period simple moving
average in light blue.)
7/24/2008 â€“ GBP/USD â€“ As of this writing, price action on the GBP/USD
daily chart, as shown, has just reached down and touched the bottom
support line of a short-term parallel uptrend channel (in green).
Currently, price has stalled and consolidated near this support level.
It should be noted that this uptrend channel is very steep, and
therefore may likely be broken to the downside at some point in the
near future. Whether that occurs on this swing or a future downswing is
the question. There has also been very clear bearish price-oscillator
divergence on the prior two swing highs. In the event of a true
impending breakdown of this uptrend channel, major support to the
downside resides around the 1.9650 region. Below this level, further
support resides around the long-term downtrend line (in red) that
extends from the multi-decade highs. A clear bounce off the current
uptrend support line, on the other hand, should target resistance once
again near the top of the parallel trend channel.
* Visit my forex tips and techniques blog here: http://fxpath.fxstreet.com *
Chief Technical Analyst
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