Monday January 26, 2009 - 17:30:30 GMT
Share This Story
FX Solutions - www.fxsol.com
Chart of the Day - 1/26/2009 - GBP/USD
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance level in yellow; downtrend lines in red; chart patterns in magenta; 50-period simple moving average in light blue.)
1/26/2009 â€“ GBP/USD â€“ On the first day of the week after hitting a fresh 23-year low, price action on the GBP/USD (a daily chart of which is shown) has rebounded cleanly off the 1.3500 extreme low. This rebound could possibly extend into a pullback move towards the bottom border of the large wedge consolidation that price broke in the beginning of last week. Currently, the level of this wedge bottom is around the 1.4200 region, which now represents substantial near-term resistance to the upside (support becomes resistance). Oscillators like the displayed Stochastics are indicating exhaustion and supporting the current price turn, as they are turning up from oversold. To the downside, the extreme low around 1.3500 serves as exceptionally strong support, as it represents a price that the pair has not visited for over two decades. Therefore, any strong breakdown below this level could carry the strong bearish momentum to target further support in the 1.3000 region.
Chief Technical Strategist
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
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."