GBPUSD Analysis – November 7, 2009

GBPUSD traded in narrow range between 1.6251 and 1.6692. Below 1.6251 will indicate that a cycle top has been formed at 1.6692 level on daily chart, then another fall towards 1.5708 is expected to follow. However, a break above 1.6741 key resistance will suggest that the fall from 1.7042 has completed at 1.5708 level already, and further rally towards 1.0742 previous high could be seen.

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