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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