Monday August 18, 2008 - 16:04:26 GMT
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Chart of the Day - 8/18/2008 - GBP/JPY
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; chart patterns in yellow; 200-period simple moving average in light blue.)
8/18/2008 â€“ GBP/JPY â€“ Mondayâ€™s price action on most currency pairs has been slow-moving and marked by sideways consolidation. GBP/JPY, a daily chart of which is shown, has been no different. After the severe drop that occurred last week, this pair has corrected somewhat and consolidated into what currently appears to be an inverted pennant formation (as represented on the chart in yellow). As flags and pennants are generally considered continuation patterns, the current pennant hints at a possible downward continuation of the uptrend support breakdown that occurred early last week. Watch for any fast and clean breakdown below the bottom border of the inverted pennant, which could signify a bonafide continuation of the down move. In this event, major support to the downside resides around the 202.50 region.
Chief Technical Analyst
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