GBPUSD Analysis – Apr 9, 2008

GBPUSD drops sharply to as low as 1.9656. Near term resistance is now at 2.0049, as long as this resistance holds, we’d expect down trend to continue and deeper decline to retest 1.9337 long term support is still in favor.

For long term analysis, the pair is in long term bearish movement. The rise from 1.9337 is treated as correction to the long term down trend. Further fall towards 1.8000 area to reach the next long term cycle bottom on weekly chart is still possible after correction.

gbpusd daily chart