GBPUSD Analysis – May 28, 2008

GBPUSD is in up trend. Pullback from 1.9852 is treated as consolidation to the up trend. Further rise to test 2.0029 resistance is still possible after consolidation. Key support is now located at 1.9363, only break of this level will signal resumption of the down trend.

For long term analysis, the pair formed a long term cycle bottom at 1.9337 (Jan 22 low), the rise from 1.9363 could possibly be resumption of the long term up trend, and rebound to 2.0500 area to reach the next cycle top on weekly chart is now in favor.

gbpusd daily chart