GBPUSD Analysis – Jun 11, 2008

GBPUSD traded in range between 1.9363 and 1.9852. Pullback to retest 1.9363 level is still possible in a couple of days. As long as 1.9363 support holds, we’d expect up trend to resume and rise to 2.0300 area is expected after consolidation. Key resistance is at 1.9852, a break of this level will signal resumption of up trend. However below 1.9337 (Jan 22 low) could indicate that cosolidation from 1.9337 has completed and long term down trend has resume.

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 in favor.

gbpusd daily chart