GBPUSD Analysis – May 7, 2011

GBPUSD had formed a cycle top at 1.6745 level on daily chart. Deeper decline towards the trend line from 1.5344 to 1.5936 would likely be seen next week. As long as the trend line support holds, the price action from 1.6745 is treated as consolidation of uptrend from 1.5344, and another rise towards 1.7000 is still possible.

For long term analysis, GBPUSD is in uptrend from 1.4230, further rise to 1.7000-1.7500 area to reach next cycle top on weekly chart is possible.

gbpusd daily chart