2/27/2009 - GBP/USD - Currently in the midst of traversing a parallel downtrend channel, price action on the GBP/USD daily chart, as shown, has settled and consolidated right above a significant support/resistance zone in the 1.4050 region. This area is near the top of the downtrend channel. Within the context of the current overall downtrend, any substantial breakdown below this 1.4050 level would be a strong bearish signal, and could target a re-test of support in the 1.3500 region, the level of the recent long-term low. The top of the current downtrend channel should continue to serve as dynamic resistance for the pair in the near-term.


James Chen
Chief Technical Analyst

FX Solutions

IMPORTANT NOTICE: These comments are for information purposes only. Past results are not necessarily indicative of future results. Trading Futures, Options on Futures, and Foreign Exchange involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. The information contained on this email does not constitute a solicitation to buy or sell by FX Solutions,LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law.

(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)