GBPUSD Analysis – July 19, 2009

GBPUSD stays in a trading range between 1.5801 and 1.6743. As long as 1.5801 support holds, the price action from 1.6662 is treated as consolidation of uptrend from 1.3654, and further rally is possible to 1.7000-1.7500 area after consolidation. Key support is at 1.5801, a break down 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