GBPUSD Analysis – December 24, 2011

Being supported by 1.5272 previous low, GBPUSD moved sideways in a range between 1.5423 and 1.5779. The price action in the range is likely consolidation of downtrend from 1.6164. As long as 1.5779 key resistance holds, another fall to re-test 1.5272 is possible after consolidation. On the other side, a break above 1.5779 will indicate that the fall from 1.6164 has completed, then the following upward move could bring price back to 1.6000 zone.

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