GBPUSD Analysis – May 14, 2011

GBPUSD broke below the uptrend line on daily chart, suggesting that lengthier consolidation of uptrend from 1.5344 is underway. Deeper decline is still possible next week, and next target would be at 1.6000 area. Resistance is at 1.6400, only break above this level could trigger another rise towards 1.7000.

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. Key support is at 1.5900, only break below this level could indicate that the rise from 1.4230 is complete.

gbpusd daily chart