GBPUSD Analysis – October 31, 2009

GBPUSD might be forming a cycle top at 1.6692 level on daily chart, key support is now located at 1.6251, a breakdown below this level will confirm the cycle top, then another fall could be seen to test 1.5708 previous low support. However, a break above 1.6741 key resistance will indicate that the fall from 1.7042 has completed at 1.5708 level, then further rebound towards 1.0742 previous high could be seen to follow.

For long term analysis, GBPUSD has formed a cycle top 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