(Please click on the accompanying chart to enlarge.)
Unlike other majors, which have recently been mired in sideways consolidations, GBP/USD (a 60-minute chart of which is shown) has generally been in clear bearish mode for quite some time now. This is illustrated by the two downtrend resistance lines of accelerating slope on the chart. This downtrend has been characterized by steady declines interrupted by short upward retracements/pullbacks. Currently extended rather far to the downside (as of Thursday afternoon, New York session), the pair should soon make another potential pullback to (or near) the downtrend resistance line, before possibly continuing the general downtrend.
- 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.
Technical Trading Tips and Techniques by 
