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GBP/USD - Further Bearish Bias
Posted on October 10, 2008 at 14:18 in Analysis by James Chen

GBP/USD Daily Chart(Please click on the accompanying chart to enlarge.)

As of Friday morning in New York, price action on the GBP/USD daily chart, as shown, continues to be entrenched in a steep downtrend. And the overall technical bias is still somewhat bearish. A potential retracement all the way back up to the current downtrend resistance line could well occur, but barring a breakout above that line (which would put the current steep downtrend in serious jeopardy), price appears generally to be leaning in a southerly direction, which could eventually target a key historical support/resistance level around the 1.6550 region.

UPDATE: As of early Monday morning in New York, price has broken out above the aforementioned downtrend line in an apparent rebound. With further upside follow-through, this could be a sign of a turn or retracement in the recent steep downtrend. Immediately to the upside is significant resistance around the 1.7450 level, which originally served as support before it was broken down last week.

6 Responses to “GBP/USD - Further Bearish Bias”

  1. on 13 Oct 2008 at 2:50 am1Ramadass

    Think GBP/USD will rise this week to 1.7500/1.7650.

  2. on 13 Oct 2008 at 12:44 pm2James Chen

    Hi Ramadass,

    Thanks for your comment and forecast. It could very well be, price has turned and rebounded as of Monday morning in New York, breaking out above the downtrend line I outlined. I will post an update shortly. Thanks again, Ramadass.

    - James

  3. on 13 Oct 2008 at 3:10 pm3Ramadass

    Hi, james chen

    If the uptrend form strong base next target GBP/USD think will be 17650/18300. Give ur comments thanks.

  4. on 13 Oct 2008 at 3:40 pm4James Chen

    Hi Ramadass!

    Thanks for your question. I posted my new comment this morning on GBP/USD. It is here: http://blogs.fxstreet.com/fxpath/2008/10/13/gbpusd-trendline-breakoutrebound/ . Thanks, Ramadass!

    - James

  5. on 15 Oct 2008 at 11:14 pm5Ramadass

    Hi, James Chen

    Looking at GPD/USD has moved to low of 1.7135 yesterday.Think its trying its low, and should gain momentem to move higher today target 1.7450/1.7500 if its able to reach then it will break 1/7700/1.8000/18300. Pls give your comments ,thanks

  6. on 16 Oct 2008 at 12:42 pm6James Chen

    Hi Ramadass,

    Thanks for your comments. I will be commenting directly on the blog very shortly. Thanks again!

    - James

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