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Daily Forex Charts: GBPJPY Consolidation May Soon Breakup

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Thursday, 28 January 2010 22:52

I have been watching the GBPJPY to see if we will get a rise to the top side downward sloping trend line. The lower red trend line is rather new, so I put more stock in the top line. The lower green line on price action represents where I think the bottom side is located somewhere along that green line. The modified MACD located at the bottom of the chart shows a break of support (green line) in the last few days. In addition there hasn't been a decent break of price action as shown by the lack of black candles in the last 17 days.

GBPUSD hasn't had a black candle for 45 days. Traders have pretty much been measured with their trading here. One very interesting move has been on with the GBPCHF with a major move higher was completely reversed in early US trade. The open and close were only 1 point apart and the high was 135 points higher than the close. This isn't a good sign for the pair moving forward. This failure was seen last November and a second even more pronounced failure could be a strong signal of further losses.

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Last Updated on Thursday, 28 January 2010 23:22

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