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Chart of the Day - 8/18/2008 - GBP/JPY
8/18/2008 – GBP/JPY – Monday’s price action on most currency pairs has been slow-moving and marked by sideways consolidation. GBP/JPY, a daily chart of which is shown, has been no different. After the severe drop that occurred last week, this pair has corrected somewhat and consolidated into what currently appears to be an inverted pennant formation (as represented on the chart in yellow). As flags and pennants are generally considered continuation patterns, the current pennant hints at a possible downward continuation of the uptrend support breakdown that occurred early last week. Watch for any fast and clean breakdown below the bottom border of the inverted pennant, which could signify a bonafide continuation of the down move. In this event, major support to the downside resides around the 202.50 region. James Chen Chief Technical Analyst FX Solutions IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors. (Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; chart patterns in yellow; 200-period simple moving average in light blue.)
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- Aug 18, 2008 11:59am Aug 18, 2008 11:59am
- Bogdan Parascanu
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