GBPUSD Analysis – May 22, 2010

GBPUSD has reached the lower border of the falling price channel on daily chart. Minor consolidation of downtrend from 1.5522 would more likely be seen and range trading between 1.4230 and 1.4800 is expected in a couple of weeks. Support is now at 1.4230, only fall below this level could trigger another fall to 1.4000 area.

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