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GBP/USD - Break of 1.4000, Continuing Downtrend Stroll

Posted on March 9, 2009 at 14:07 in Analysis by James Chen

GBP/USD as of Monday morning (3/9/2009) is continuing its downward stroll along the lines of a parallel downtrend channel that has been in place since late October 2008. This morning’s substantial breakdown below the key 1.4000 level highlights the continuing bearishness in this currency pair within the context of the downtrend channel. To the downside, the next major support level resides in the 1.3500 region, the level of January’s long-term low. To the upside, the broken 1.4000 level should now act as resistance where it previously served as support.

3 Responses to “GBP/USD - Break of 1.4000, Continuing Downtrend Stroll”

on 10 Mar 2009 at 2:02 pm1Yohay

Yup, it made a strong move downwards. Thanks for showing the downtrend channel.
The Pound is also falling significantly against the Euro. I see a break of the downtrend resistance in the EUR/GBP. Do you also see that? Thanks.
on 10 Mar 2009 at 2:27 pm2James Chen

Hi Yohay,

Thanks, as always, for your very astute remarks. That is actually the Chart of the Day today (EUR/GBP). I will post soon. Thanks again, Yohay!

James Chen
on 10 Mar 2009 at 2:36 pm3Yohay

Oh great! I “broke into an open door”…
I wrote about that in my blog, and I’m waiting to see your insightful analysis.

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3 Responses to “GBP/USD - Break of 1.4000, Continuing Downtrend Stroll”