GBPUSD Analysis – May 16, 2010

GBPUSD remains in downtrend from 1.5522, deeper decline is still in favor and next target would be at 1.4200 area. Resistance is now at 1.5053, only rise above this level could take price back towards the upper border of the falling price channel.

For long term analysis, GBPUSD is in bearish movement from 1.7042 (Aug 5, 2009 high). Fall to 1.4000 area to reach next cycle bottom on weekly chart is expected in next several weeks.

gbpusd daily chart