Forex Analysis: GBP/USD Extends Bearish Trend

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

Forex trading involves a substantial risk of loss and is not suitable for all investors.   FX Solutions LLC (“FXS”) is compensated through a portion of the bid/ask spread. This information is being provided only for general market commentary (based on technical analysis) and does not constitute investment trading advice.  Certain information contained herein has been obtained from sources that FXS believes to be reliable; however, FXS cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is subject to change without notice. FXS has no obligation to update any or all of such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision. Past performance is not necessarily indicative of future results. No determination has been made regarding the appropriateness of any information contained herein. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated herein. FXS expressly disclaims any loss or profits that may arise from any use of the information contained in or derived from this commentary. FXS and its affiliates may engage in transactions that are inconsistent with the views expressed herein.   FXS does not endorse nor is it responsible for any third-party posts related to this material.

Read Next

USDJPY Technical Update – 12/11/2012

• Guest
• 11 years

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…