(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.)
8/12/2009 € GBP/CHF € Price action on GBP/CHF, a daily chart of which is shown, has been displaying a close adherence to and respect of certain technical levels, both in the form of horizontal support and resistance levels as well as angled trendlines. After respecting the 1.8100 resistance region last week with a bearish bounce off that level, price action has just touched an exceptionally valid uptrend support line that has been in place since the beginning of the year, with at least five price touches since the trendline€™s inception. As of Wednesday (8/12/2009), current price action has respected this trendline once again with a tentative bounce up off the line. A continuation of this bullish bounce should target the 1.8100 level once again. Any significant breakdown of this trendline should target further major support in the general 1.7450 price region.
James Chen, CMT
Chief Technical Strategist
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