Price action on GBP/USD, a 4-hour chart of which is shown, has been entrenched in a clear parallel uptrend channel since the early June low. Since that beginning of the bullish channel, price has made regular higher lows and higher highs, periodically breaking out above intra-channel downtrend resistance lines. Currently, after bouncing off the 38.2% Fibonacci retracement of the latest bullish channel run, price has just tentatively broken out above the latest of these downtrend resistance lines. For more technical analysis on this currency pair, please click here for Tuesday’s (7/06/2010) Chart of the Day.
James Chen, CTA, CMT
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