GBPUSD Analysis – Jul 30, 2008

GBPUSD broke below the up trend line from 1.9408 to 1.9647 and formed a cycle top at 2.0158 on daily chart. Deeper decline to retest 1.9337 (Jan 22 low) is now in favor. However, a break below 1.9647 is needed to confirm such case. Key resistance is at 2.0158, only rise above this level will signal further rally towards 2.0391 (Mar 14 high).

For long term analysis, GBPUSD might be forming a cycle top at 2.0158 on weekly chart. Key support is located at 1.9647, a break down below this level will confirm the cycle top.

gbpusd daily chart