(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; downtrend line in red; horizontal support/resistance lines in yellow; Fibonacci retracement levels in grey; 50-period simple moving average in light blue.)
2/18/2008 â€“ EUR/GBP â€“ Much like other sterling crosses, EUR/GBP, the daily chart of which is shown, is still mired in a continuing range consolidation. For at least the past year, this currency pair has been characterized by relatively tight ranging activity followed by decisive range-breakouts to the upside. Within the current horizontal range, price has just broken out above an intra-range downtrend line (represented on the chart by the red downtrend line). If price follows through in the direction of this break, clearly the next major resistance to the upside resides around the top of the range, where the historical high for EUR/GBP reached the 0.7600 region. It is also interesting to note that the bottom line of the current horizontal range, which has been touched several times within the last month or so, coincides accurately with the 23.6% Fibonacci retracement level (the low-to-high retracement span being measured from the 9/4/2007 beginning low of the prevailing bull run to the historical high reached on 1/15/2008).
Chief Technical Analyst
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