GBPUSD Analysis – Jul 12, 2008

GBPUSD is forming a cycle bottom at 1.9647 on daily chart. Further rise to 2.0200 to reach next cycle top is still possible next week, and a break of 2.0006 previous high is needed to confirm such case. Initial support is at 1.9647, only fall below this level will turn price back to 1.9500 level.

For long term analysis, the pair formed a long term cycle bottom at 1.9337 (Jan 22 low). Rebound to 2.0500 area to reach the next cycle top on weekly chart is in favor.

gbpusd daily chart