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GBP/USD Bounces Off Trend Line

GBP/USD (a 4-hour chart of which is shown) as of Wednesday (11/17/2010) has retraced back down to and tentatively bounced up off a key uptrend support line extending back to the early September low. This uptrend line has been touched at least three times prior to yesterday’s and today’s tentative bounce. The corrective descent down to this trendline follows a breakdown confluence. For more GBP/USD forex technical analysis, please click here.

James Chen, CTA, CMT