GBPUSD Analysis – May 21, 2011

GBPUSD’s downward movement from 1.6745 extended to as low as 1.6105. Deeper decline towards 1.5936 support could be seen next week, as long as this level holds, the price action from 1.6745 is treated as consolidation of uptrend from 1.5344, and one more rise towards 1.7000 is still possible after consolidation.

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