GBPUSD Daily Analysis – November 1, 2016

GBPUSD moved sideways in a narrow range between 1.2082 and 1.2332 for several weeks. The sideways movement is likely consolidation of the downtrend from 1.3445 (Sept 6 high). As long as the downward trend line resistance holds, the downtrend could be expected to resume, and further decline to 1.1500 area is still possible. Support is at 1.2082, a breakdown below this level will signal resumption of the downtrend. Near term resistance is at 1.2332, a break of this level could bring price to test the trend line resistance.

gbpusd chart