(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
2/25/2010 - GBP/USD - Bearish price action on GBP/USD, a daily chart of which is shown, has broken below key support in the 1.5350 price region to establish a new 9-month low and, in the process, tentatively dropped below the bottom border of a parallel downtrend channel that has been in place since the November highs. Currently, the bearishness has approached a key 161.8% Fibonacci extension (of the prior bearish run from 11/16/2009 to 12/30/2009) which resides just above the 1.5200 price region. Further downside price action should target the very significant support/resistance and key psychological level in the 1.5000 price region. Within the context of the currently accelerated downtrend, tentative upside resistance now resides around the previously broken support in the 1.5350 price region.
James Chen, CMT
Chief Technical Strategist
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