GBPUSD Analysis – Jun 14, 2008

GBPUSD is forming a sideways consolidation in a range between 1.9363 and 1.9852. Pullback to retest 1.9363 level is still possible next week. As long as 1.9363 support holds, we’d expect up trend to resume and rise to 2.0300 area is still in favor. Key resistance is now located at 1.9800, a break of this level will signal resumption of up trend. However below 1.9337 (Jan 22 low) could indicate that consolidation 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