(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.)
6/10/2008 – EUR/GBP – Price action on the EUR/GBP daily chart, as shown, is currently consolidating in a sideways trading range. At the same time, however, this key cross has just hit and bounced up off of a significant uptrend support line (represented on the chart by the long green line). In the event that this bounce continues its upward momentum, as might be expected from a technical perspective, the first major resistance to the upside resides around 0.8030, at the previous horizontal resistance level marked A. Oscillators like the displayed Stochastics, however, are pointing towards a possible breakdown of the uptrend line, as they are emerging unmistakably down from overbought. In the event of this breakdown, the next major support to the downside resides around 0.7760, at the previous horizontal support level marked B.
Chief Technical Analyst
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