GBPUSD Analysis – Feb 24, 2008

Being supported by previous low at 1.9337, GBPUSD rebounds from 1.9361 level. Further rise to 1.9900 area to reach the next cycle top on daily chart is still possible, and the next cycle top in nearing, a break of 1.9737 level will confirm such case. Key support is at 1.9337, only break of this level will signal the resumption of the down trend, and deeper decline to 1.9000 area is expected to follow.

For long term analysis, the pair is in long term bearish movement. The rise from 1.9337 is treated as consolidation to the long term down trend. Further fall towards 1.8000 area to reach the next cycle bottom on weekly chart is still possible after consolidation.

gbpusd daily chart