GBPUSD Analysis – May 5, 2012

GBPUSD may be forming a cycle top at 1.6301 on daily chart. Pullback to test the support of the uptrend line would likely be seen next week, a clear break below the trend line support will indicate that the upward movement from 1.5602 has completed, then further decline towards 1.5600 could be seen. Resistance is at 1.6301, only break above this level could trigger another rise to 1.6450 zone.

For long term analysis, GBPUSD is in correction of the downtrend from 1.6745 (Apr 28, 2011 high). Another fall towards 1.4500 could be expected after correction.

gbpusd daily chart