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GBP/USD - Accelerated Bearish Trend

Posted on February 25, 2010 at 16:46 in Analysis by James Chen

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

* For information on my DVD set, High-Probability Trend Following in the Forex Market, please click here.
* For information on my book,
Essentials of Foreign Exchange Trading (Wiley), please click here.

3 Responses to “GBP/USD - Accelerated Bearish Trend”

  1. on 28 Feb 2010 at 8:47 am1Pico

    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.

  2. on 28 Feb 2010 at 10:24 am2Pico

    Mr. Chen,

    Sorry, ignore my early comment, now i´m undertanding what you did.

    Thank you.

  3. on 03 Mar 2010 at 2:03 am3James Chen

    Thanks for visiting, Pico! Please let me know if you have any questions.

    James Chen

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