GBPUSD Analysis – Apr 26, 2008

GBPUSD traded in a range between 1.9599 and 2.0193 for several weeks and is in consolidation to the down trend. As long as 2.0193 resistance holds, we’d expect down trend to resume and deeper decline to test 1.9337 (Jan 22 low) support could be seen.

For long term analysis, the pair is in long term bearish movement. The rise from 1.9337 (Jan 22 low) 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.

gbpusd daily chart