FX Path

EUR/GBP - Bearish Correction in Steep Uptrend

Posted: 30 Sep 2009 09:20 AM PDT

Price action on EUR/GBP, a daily chart of which is shown, has made a minor bearish correction within a steep overall uptrend. This occurs after price hit an approximate 6-month high around 0.9300 with a clear shooting star candle (a bearish indication) earlier in the week. As of Wednesday (9/30/2009), the bearish retracement has descended down to a strong support/resistance level in the 0.9075 price region before bouncing back up. For more technical analysis on this currency pair, please click here for Wednesday’s (9/30/2009) Chart of the Day.

- James Chen, CTA, CMT

* I will be key speaker at FXstreet.com's International Traders Conference in Barcelona, Spain in October 2009 - for more information, please go to: www.traders-conference.com .

* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

* Follow my intraday forex updates on Twitter: http://twitter.com/JamesChenFX