11/25/2008 – GBP/USD – The current consolidation on the GBP/USD daily chart, as shown, has taken the form of a tentative inverted flag formation. Price is currently near the top border of the flag in a correction off recent multi-year lows. If a close significantly above the top border of the flag occurs (around the 1.5400 region), the flag’s customary role as a continuation pattern will have been invalidated. A subsequent bounce down off the top border of the flag, on the other hand, could presage an ultimate break to the downside of the flag, which would continue the long-term downtrend and target the 1.4550 ... (full story)