(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.)
3/27/2009 € GBP/USD € Price action on GBP/USD, a daily chart of which is shown, has been displaying steady dollar-strengthening for the latter half of this past week, falling to support just below the 1.4300 price zone before stalling. This occurs after price broke out above a major parallel downtrend channel. The current bearishness may be seen as a pullback after the channel breakout, and any further bearishness should find strong further support around the top border of the broken downtrend channel. To the upside, any subsequent move above the 1.4775 swing high of the channel break should confirm a bullish continuation that could target further major resistance around the 1.5000 price region.
James Chen, CMT
Chief Technical Strategist
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