GBPUSD Analysis – October 6, 2012

GBPUSD may be forming a cycle bottom at 1.6066 on daily chart. Further rise to test 1.6309 resistance would likely be seen next week, a break above this level could signal resumption of the uptrend from 1.5393, then another rise towards 1.6500 could be seen. Initial support is at the lower line of the price channel, only a clear break below the channel support will indicate that lengthier consolidation of the uptrend is underway.

For long term analysis, GBPUSD formed a sideways consolidation in a range between 1.5236 (Jan 13 low) and 1.6745 (Apr 28, 2011 high). Further rise to test 1.6745 resistance would likely be seen over the next several weeks.

gbpusd daily chart