GBPUSD Analysis – January 30, 2010

GBPUSD has formed a cycle top at 1.6456 level on daily chart. Another fall towards 1.5708 previous low is expected next week, a breakdown below this level trigger further decline to 1.4800-1.5000 area. Resistance is at 1.6456, only rise above this level will take price back to range trading between 1.5708 and 1.7042.

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 a couple of weeks and another fall towards 1.4800 is possible.

gbpusd daily chart