GBP/USD analysis (July 02nd 2011)

Over the long term, the Cable is a bit choppy evolving without a clear direction. The pair has found a great support on top the weekly lower bollinger band at 1,59.


GBP/USD: 4-hour chart

On a shorter term basis, the Cable should be well capped ahead of 1,63 corresponding to the former support as well as a descending trendline started in the beginning of May.
Besides, the market will have first to get through 1,61 which has offered a nice resistance lately.

A break below 1,59 though would negate the bullish outlook and validate a possible long term reversal structure.