GBPUSD Analysis – July 11, 2009

GBPUSD is in range trading between 1.5801 and 1.6743. Moving sideways in this range is expected next week. As long as 1.5801 support holds, the price action in the trading range is treated as consolidation of uptrend from 1.3654, and further rally is possible to 1.7000-1.7500 area after consolidation, however, a break above 1.6743 is needed to confirm the resumption of uptrend. Key support is at 1.5801, below this level will indicate that the uptrend from 1.3654 has completed at 1.6743 level already, then deeper decline could be seen to 1.5500 zone.

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 still possible.

gbpusd daily chart