(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; 50-period simple moving average in light blue.)
6/16/2009 € GBP/USD € Price action on GBP/USD, a daily chart of which is shown, continues to traverse a steep parallel uptrend channel. This is despite coming down from a failed double-test high that reached up to around 1.6620, falling short of the previous 1.6660 high. Currently, price has bounced up off support around 1.6200. A continuation of the current steep uptrend would be confirmed on a breakout above the 1.6660 high, which is also a key, long-term resistance region. In the event of a major breakout of this nature, any continued bullishness in this pair could reach up further to target the psychologically-important 1.7000 level. To the downside, dynamic support continues to reside around the accelerated uptrend support line extending from the lows in late April.
James Chen, CMT
Chief Technical Strategist
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