(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.)
4/03/2009 € GBP/USD € Price action on GBP/USD, a daily chart of which is shown, has displayed significant bullishness since the pair bounced up off the triple support provided by: the 1.4100 horizontal support level, a short-term uptrend channel support line, and a medium-term downtrend support line. Currently, price has moved up significantly within the short-term parallel uptrend channel, tentatively surpassing the recent 1.4775 swing high, and now appears to be targeting strong resistance right around the 1.5000 level. Any significant break to the upside above the 1.5000 price region could eventually target further resistance around the 1.5300 support/resistance region. To the downside, the bottom of the short-term uptrend channel should continue to provide substantial near-term support for the pair.
James Chen, CMT
Chief Technical Strategist
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