James Chen
09-19-2008, 11:16 AM
9/19/2008 – GBP/USD – Price action on the long-term GBP/USD WEEKLY chart, as shown, is currently approaching a key level in its current upward correction. This level (marked “A” on the chart) is the 1.8500 region, and it represents not only a key psychological price zone where price has turned several times in the past, but also where a major 38.2% Fibonacci retracement level resides (the high-to-low retracement span being measured from the high reached on 7/15/2008 to the low reached on 9/11/2008). This 1.8500 level therefore represents strong current resistance to the upside, a strong breakout of which should indicate a major change in trend. The weekly Stochastics, as shown, are supporting this move towards resistance, as the oscillator is pointing unmistakably up from extremely oversold. A move back down, on the other hand, should meet significant support around the 1.8100 region.
James Chen
Chief Technical Analyst
FX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document 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. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; horizontal support/resistance levels in yellow; 50-period simple moving average in light blue.)
James Chen
Chief Technical Analyst
FX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document 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. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; horizontal support/resistance levels in yellow; 50-period simple moving average in light blue.)