GBPUSD Analysis – October 30, 2010

GBPUSD’s fall from 1.6105 extended to 1.5649 only. The subsequent bounce from 1.5649 is more likely resumption of uptrend from 1.5296, another rise towards 1.6400-1.6500 is expected next week, however a break above 1.6105 is needed to confirm the resumption of uptrend. Support is at 1.5875, only break below this level will suggest that lengthier consolidation of uptrend is underway, then another fall to re-test 1.5649 could be seen.

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