GBPUSD Analysis – December 18, 2011

GBPUSD broke below 1.5423 support, suggesting that the downtrend from 1.6164 has resumed. Further fall to test 1.5272 support is extended, a breakdown below this level could signal resumption of the downtrend from 1.6745 (Apr 28 high). Key resistance is at 1.5779, only break above this level could indicate that the fall from 1.6164 is complete.

For long term analysis, GBPUSD had formed a cycle bottom at 1.5272 on weekly chart. Range trading between 1.5272 and 1.6745 is expected.

gbpusd daily chart