Bearish price action on GBP/USD, a daily chart of which is shown, has broken below key support in the 1.5350 price region to establish a new 9-month low and, in the process, tentatively dropped below the bottom border of a parallel downtrend channel that has been in place since the November highs. Currently, the bearishness has approached a key 161.8% Fibonacci extension (of the prior bearish run from 11/16/2009 to 12/30/2009) which resides just above the 1.5200 price region. For more technical analysis on this currency pair, please click here for Thursday’s (2/25/2010) Chart of the Day.
- James Chen, CTA, CMT
* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.
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