Chart Of The Day: GBP/USD

6/26/2008 - GBP/USD - After the FOMC announcement yesterday and the London market open today, price made a serious breakout of the long-term downtrend resistance line as shown on the accompanying GBP/USD daily chart. This was a clean breakout that just reached the level of the 200-period simple moving average as of this writing, breaking through an additional key resistance level (around 1.9850) in the process. The broken downtrend resistance line is now considered a major dynamic support level to the downside. To the upside, any continued momentum from the breakout should target further major resistance in the 2.0100 region, although oscillators like the displayed Stochastics are showing well-overbought.

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.)