Chart Of The Day: GBP/USD

9/30/2008 - GBP/USD - Price action on the key GBP/USD pair (a daily chart of which is shown) has been in strong bearish mode since the beginning of the week as the dollar has strengthened across the board. This has manifested itself into what is appearing to be a continuation of the downtrend that has been in place since late-July. Momentum on this pair still appears to be unmistakably down, with little in the way of a strong bottom in sight. Price has broken down below support barrier after support barrier, including several significant Fibonacci levels. Currently, as of Tuesday mid-morning in New York, fast-moving price-action has moved down below a key 61.8% Fibonacci level, and any continued bearish momentum could now target the major support that resides first around 1.7750, and then eventually around the 1.7450 region.

James Chen
Chief Technical Analyst

FX Solutions

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(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.)