Technical Trading Tips and Techniques by 
Update on the GBP/USD 4-hour chart, as shown. After breaking out above the long-term downtrend resistance line yesterday, price has approached the top of the short-term parallel uptrend channel that I outlined yesterday.
After price approached the top of the channel, it retreated, as a loss of upward momentum set in. Oscillators like the displayed Stochastics are confirming this loss of momentum, as they are extremely overbought and turning down. If this downward spiral continues in the short-term, we’re looking for support targets at the long-term downtrend line or the short-term uptrend support line, whichever comes first. To the upside, resistance for the time being continues to be around the top of the rising parallel uptrend channel.
- James
James Chen is the Chief Technical Analyst at FX Solutions,
a leading Forex broker. He is also a registered Commodity Trading
Advisor (CTA) and a Chartered Market Technician (CMT) Level 3
candidate. At FX Solutions, Mr. Chen writes daily currency analysis,
conducts forex trading seminars, and has authored numerous articles on
currency trading and technical analysis for major financial
publications. His upcoming book, Essentials of Foreign Exchange Trading
(John Wiley & Sons), will be released in early 2009.