GBPUSD Analysis – January 1, 2011

Being contained by 1.5296 key support, GBPUSD rebounded from 1.5344. Resistance is at the downtrend line from 1.6298 to 1.5910, as long as the trend line resistance holds, downtrend from 1.6298 could be expected to continue and one more fall to re-test 1.5296 support is still possible. However, a clear break above the trend line resistance will indicate that the fall from 1.6298 has completed at 1.5344 already, then the following upward move could bring price back towards 1.6298 previous high.

For long term analysis, GBPUSD is forming a cycle top at 1.6298 level on weekly chart, key support is at 1.5296, a breakdown below this level is needed to confirm the cycle top.

gbpusd daily chart