GBPUSD Analysis – July 22, 2012

GBPUSD moves sideways in a range between 1.5268 and 1.5776. As long as 1.5776 resistance holds, the price action in the range is treated as consolidation of the downtrend from 1.6301, and another fall towards 1.5000 is still possible after consolidation. On the upside, a break above 1.5776 will indicate that the fall from 1.6301 has completed at 1.5268 already, then the following upward movement could bring price to 1.6000 zone.

For long term analysis, GBPUSD has formed a cycle top at 1.6301 on weekly chart. Further decline to 1.4500 area is expected over the next several weeks.

gbpusd daily chart