GBPUSD Analysis – May 16, 2009

After touching the upper border of the rising price channel on daily chart, GBPUSD pulls back from 1.5352. Consolidation below this level would more likely be seen next week and further pullback towards the lower border of the price channel is possible. Near term resistance is now at 1.5352, only rise above this level will indicate that the uptrend from 1.3654 has resumed and then further rally could be seen to 1.5500-1.5600 area.

For long term analysis, GBPUSD is in consolidation of the long term downtrend from 2.1161 (2007 high). Rebound to 1.5500-1.6000 area to reach the next cycle top on weekly chart is expected.

gbpusd daily chart