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Chart of the Day: GBP/USD

Tuesday, 18 November 2008 04:49:51 GMT

Written by Thomas Long, Power Course Instructor

A look at some various 4-hour charts shows a stronger move against the trend. This is the time to be patient and wait for a sign that this counter trend move may be ending.

11-18 gbpusd

This is where the use of technical indicators and trendlines can be or great help. This 4-hour GBP/USD chart shows that the market is moving up towards a trendline while the RSI moves up to the overbought range which is 70 or above. A move by the RSI to above then back down below 70 after the market tested the trendline would be about as good as it gets for a selling opportunity. But time will tell and we will be watching.

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