Monday October 13, 2008 - 00:14:19 GMT
Share This Story
Forex Hound - www.forexhound.com
GBPUSD 23 Year Technical Study
Aside from USDJPY, currency traders have kept the dollar bid for the most part since mid-July with no let up.
Although the USD has been a one way bet since this time, cable watchers may wish to take note of a monthly Fibonacci confluence support zone which was reached on Friday last week.
The green box on the monthly chart shows this support zone. Since this chart spans 23 years, it conceivable that the zone will hold for the intermediate term and some sort of rally ought to materialise. Although, not textbook, there is also the potential for a monthly head and shoulders formation.
Since some of the uncertainty regarding the adequate capitalisation of UK banks has now been resolved over this weekend and the US is going to issue more debt and thus devalue its currency, the probability of the USD maintaining its "flight to safety" status for much longer appears unlikely.
Chart watchers may look for a turn to commence on Sunday night.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."