(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; horizontal support/resistance levels in yellow; 50-period simple moving average in light blue.)
5/29/2008 – EUR/GBP – Like the other euro crosses, EUR/GBP (the daily chart of which is shown), is mired in somewhat of a horizontal range consolidation. This occurs after an impressive uptrend run that began late last year and culminated in a very long-term high at around 0.8095, which was double-tested in mid-April (represented by the short yellow line on the top). Currently, price is approaching significant uptrend support, represented by the long green line. This dynamic line is relatively strong, and should provide some considerable price support moving forward. Slightly below this, further support resides at the bottom of the horizontal range around 0.7760 (represented by the longer yellow line). Oscillators like the displayed Stochastics are lending strength to this potentially bullish outlook, as they have just approached oversold. In the event of an upturn at or near the uptrend support line, major resistance clearly resides in the region of the aforementioned double-tested high around 0.8095.
Chief Technical Analyst
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