GBPUSD Analysis – October 3, 2009

GBPUSD broke below 1.5801 support, confirming a bearish trend is under way. Deeper decline is still in favor and target would be at 1.5300 zone. Initial resistance is at 1.6150 followed by the falling trend line from 1.7042 to 1.6741, as long as the trend line resistance holds, we’d expect downtrend from 1.7042 to continue.

For long term analysis, GBPUSD broke below 1.6113 key support, suggesting that a cycle top has been formed at 1.7042 level on weekly chart. Further fall to 1.5000 area to reach next cycle bottom is expected in next several weeks.

gbpusd daily chart