GBPUSD Analysis – July 4, 2009

After breaking above 1.6662 resistance, GBPUSD pulls back from 1.6743 level. Deeper decline is possible to test 1.5801 key support, a break down below this level will indicate that the uptrend from 1.3654 has completed at 1.6743 level already, then the next target would be at 1.5500 zone. On the other side, if 1.6743 resistance gives way, further rise could be seen to 1.7000-1.7500 area.

For long term analysis, GBPUSD is in correction of the long term downtrend from 2.1161 (2007 high). Rebound to 1.7000-1.7500 area to reach the next cycle top on weekly chart is expected.

gbpusd daily chart