Forex technikal and fundamental analysis: FX Path

May 6, 2010

FX Path

GBP/USD Descends to 1.5000 and Still Bearish

Posted: 06 May 2010 07:41 AM PDT

Price action on GBP/USD, a daily chart of which is shown, has once again descended to approach key support in the important 1.5000 price region. This occurs within the context of a strong overall downtrend. The entire current week has thus far been characterized by marked bearishness after having descended from the 1.5350 region resistance. The technical bias on this currency pair continues to be bearish in line with the current prevailing downtrend. For more technical analysis on this currency pair, please click here for Thursday’s (5/06/2010) Chart of the Day.

UPDATE: As of late Thursday (5/06/2010) morning New York session, price has dropped dramatically below the key 1.5000 level noted above. A significant downside target remains around the 1.4800 support region.

James Chen, CTA, CMT

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