GBPUSD Analysis – October 16, 2010

GBPUSD continues its upward move from 1.5296 and the rise extended to as high as 1.6105 level. Key support is now located at 1.5755, as long as this level holds, uptrend is expected to continue and next target would be at 1.6200-1.6300 area. However, a breakdown below 1.5755 will indicate that the rise from 1.5296 is complete, then pullback to 1.5400 area could be seen to follow.

For long term analysis, GBPUSD is in uptrend from 1.4230. Rise to 1.8000 area to reach next cycle top on weekly chart is expected in next several months.

gbpusd daily chart