Bearish price action on GBP/USD, a daily chart of which is shown, has broken below key support in the 1.5350 price region to establish a new 9-month low and, in the process, tentatively dropped below the bottom border of a parallel downtrend channel that has been in place since the November highs. Currently, the bearishness has approached a key 161.8% Fibonacci extension (of the prior bearish run from 11/16/2009 to 12/30/2009) which resides just above the 1.5200 price region. For more technical analysis on this currency pair, please click here for Thursday’s (2/25/2010) Chart of the Day.
- James Chen, CTA, CMT
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Please Mr. Chen,
This 161.8% level means -61.8%?
Here, 161.8% fibonacci extension is above 100% level.
Thank you so much for your help.
Best Regards,
Pico.
Mr. Chen,
Sorry, ignore my early comment, now i´m undertanding what you did.
Thank you.
Thanks for visiting, Pico! Please let me know if you have any questions.
James Chen