GBPUSD Analysis – January 16, 2010

GBPUSD broke above the falling price channel on daily chart, suggesting that a cycle bottom has been formed at 1.5829 on daily chart. Now the pair is back to range trading between 1.5708 and 1.7042. Bounce to 1.6500-1.6600 area to reach next cycle top would more likely be seen in a couple of weeks.

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