(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance line in yellow; 50-period simple moving average in light blue.)
3/17/2008 â€“ GBP/USD â€“ Over the weekend the dollar plummeted even further against the major currencies, with the notable exception of the British Pound. As can be seen on the long-term GBP/USD WEEKLY chart, as shown, after the December 2007 breakdown of the long-term uptrend channel (represented on the chart by the parallel green lines), price hit a double bottom (represented on the chart by the short yellow horizontal line), and then performed a classic pullback to the previously broken uptrend line just last week. Then, as mentioned, Sunday saw Cable defy the prevailing weekend movement in the other major dollar-based pairs by moving down in a predominantly dollar-strengthening direction. From a longer-term perspective, a further move back down past the double bottom would fulfill the commonly-held expectation of a classic pullback move. On the other hand, a dollar-weakening turn back up would target resistance once again at the lower green uptrend line of the long-term parallel uptrend channel.
Chief Technical Analyst
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