GBP/USD analysis (July 11, 2011)

AS we mentioned in our previous analysis, the Cable is the process of building a double bottom formation after a significant bounce on friday.
Next key resistance is represented by previous high at 1,6150.

GBP/USD: daily chart

The momentum has recently turned to bullish and we think the market will be testing 1,6150 soon. A break above this level exposes 1,63/1,6350 corresponding to the projection of the double bottom formation.

Only a break below last week low at 1,5930 would negate this bullish scenario and expose further weakness on the pair.