(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.)
5/05/2009 ï¿½ EUR/GBP ï¿½ Consolidating price action on EUR/GBP, as shown on the displayed daily chart, has been following a short-term downtrend resistance line since price approached the 0.9100 resistance in late April. This gently bearish price action within the context of a current price consolidation is now approaching the consolidationï¿½ï¿½s support, around the 0.8800 level. A breakdown below this support level should target immediate further support in the 0.8650 price region, a significant prior support/resistance level. Any breakout to the upside above the noted short-term downtrend resistance line could carry the bullish momentum to target key resistance once again in the 0.9100 region.
James Chen, CMT
Chief Technical Strategist
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