Technical Trading Tips and Techniques by 
(Please click on the accompanying chart to enlarge.)
Recent price action on GBP/USD (a daily chart of which is shown) has been continuing its climb to progressively higher levels. Having broken out solidly above the key 1.8500 support/resistance level, the big question is whether or not price currently carries enough bullish strength to reach another key resistance level around the 1.8800 region. Not only does 1.8800 represent a recently double-tested resistance level, but it also represents a major 50% Fibonacci retracement level (the high-to-low retracement span being measured from the high reached on 7/15/2008 to the low hit on 9/11/2008). A forceful fall back down below 1.8500, on the other hand, should meet initial support around the 1.8400 region.
- 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