GBPUSD Analysis – August 25, 2012

GBPUSD breaks above 1.5776 resistance and reaches as high as 1.5911, suggesting that the uptrend from 1.5268 has resumed. Further rise is still possible next week, and next target would be at the upper line of the price channel on daily chart. Support levels are now at 1.5760 and 1.5670, only break below these levels could bring price back towards the lower line of the channel.

For long term analysis, GBPUSD had 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