GBPUSD Analysis. Jan 13, 2008

GBPUSD broke below the long term support at 1.9652 (Aug 17, 2007 low), and reached as low as 1.9481. Further fall towards 1.9300 area is still in favor. Near term resistance is at the down trend line from 2.1161 to 2.0830, and as long as the trend line resistance holds, we’d expect down trend to continue.

For long term analysis, the pair is in long term bearish movement. Further fall towards 1.8000 area to reach the next cycle bottom on weekly chart is expected.

gbpusd daily chart