GBPUSD Analysis – December 31, 2011

Being contained by 1.5272 support, GBPUSD formed a sideways consolidation below 1.5779. Another fall to test 1.5272 support is possible next week, a breakdown below this level could bring price to 1.4500 zone. On the other side, a break above 1.5779 key resistance will signal completion of the downtrend from 1.6164, then the following upward move could bring price 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