GBPUSD Analysis – December 19, 2009

GBPUSD runs in a falling price channel on daily chart and remains in downtrend from 1.6875. As long as the channel resistance holds, we’d expect downtrend to continue and further decline towards 1.5900-1.6000 area is possible.

For long term analysis, GBPUSD has formed a cycle bottom at 1.5708 level on weekly chart. Sideways consolidation in range between 1.5708 and 1.7042 is expected in next several weeks and another fall towards 1.4800 is possible.

gbpusd daily chart