GBPUSD Analysis – July 28, 2012

GBPUSD is facing 1.5776 resistance. As long as this level holds, the rise from 1.5268 could be treated as consolidation of the downtrend from 1.6301 and another fall towards 1.5000 is still possible. However, a break above 1.5776 will indicate that lengthier sideways movement in a range between 1.5236 and 1.6301 is underway, then further rise to 1.6000 area could be seen.

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