Price action on GBP/USD has taken the rough formation of a cup-and-handle pattern. This is a long-term pattern that consists of a large “U”-shaped rounded bottom with a “handle” consolidation on the right-hand side of the pattern that is angled slightly to the downside. In this type of pattern, the event to watch for would be any strong breakout to the upside of the handle. For more technical analysis on this currency pair, please click here for Tuesday’s (7/28/2009) Chart of the Day.
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