GBPUSD—pennant

On the hourly chart the pair is in a pennant. If it breaks out, the length of the flagpole that preceded it hints at a target of 1.5316 which is near the 2/26 high of 1.5323. Offsetting this is the somewhat negative bearish divergence with RSI. Support is at 1.5112 and 1.5027. Resistance is at 1.5196, 1.5323 and 1.5576.

Here's the hourly chart:



















© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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