GBPUSD Analysis – Jul 16, 2008

As expected, GBPUSD broke above 2.0006 resistance and formed a cycle bottom at 1.9647 on daily chart. Further rise to test 2.0391 (Mar 14 high) is still possible in next few days. Initial support is at 1.9647, as long as this support holds, up trend will continue.

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