GBPUSD Analysis – March 17, 2012

After touching 1.5645 support, GBPUSD rebounded from 1.5602, suggesting that a cycle bottom has formed on daily chart. However, the rise would possibly be correction of the downtrend from 1.5991, another fall towards 1.5236 previous low is still possible after correction.

For long term analysis, GBPUSD may be forming a cycle top at 1.5991 on weekly chart, key support is at 1.5602, a breakdown below this level will confirm the cycle top, then further fall towards 1.4500 could be seen over the next several months.

gbpusd daily chart