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Forex Analysis: GBP/USD Extends Bearish Trend

GBP/USD Daily Chart

GBP/USD (daily chart) as of November 12, 2012 has fallen below key support around 1.5900, establishing a new 2-month low in the process and extending the bearish trend that has been in place since the September 1.6300 area high. Having fallen below 1.5900, price is now approaching both the 200-day moving average as well as a key uptrend support line extending back to the June 1.5265 area low. In the event of any breakdown below those two potential support factors, price could further extend its bearish trend with a move towards the 1.5750 price region, which has served as both strong support and resistance several times within recent months.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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James Chen

James Chen

James Chen is Chief Technical Strategist for City Index Group. He is also a Chartered Market Technician. He is the author of the books: "Essentials of Foreign Exchange Trading" (John Wiley & Sons, 2009) and "Essentials of Technical Analysis for Financial Markets" (John Wiley & Sons, 2010). Mr. Chen writes currency analysis, leads forex trading seminars and has appeared in numerous major financial media outlets, including CNBC, Bloomberg TV, Forbes, Reuters, Dow Jones, and the Associated Press.