GBPUSD Analysis – August 12, 2012

GBPUSD has formed a sideways consolidation in a range between 1.5393 and 1.5776. Another rise to test 1.5776 resistance would likely be seen, a break above this level will target 1.5900 area. Key support is at 1.5393, only break below this level could indicate that the downtrend from 1.6301 has resumed, then further decline towards 1.5000 could be seen.

For long term analysis, GBPUSD has formed a cycle top at 1.6301 on weekly chart. Further decline to 1.4500 area is expected over the next several weeks.

gbpusd daily chart