GBPUSD Analysis – Aug 27, 2008

GBPUSD’s down trend remains and the fall from 2.0158 extended further to as low as 1.8330 yesterday. Deeper decline is expected to 1.8000 level in next few days. Key resistance is located at 1.8794, a break above this level level will indicate that the down trend from 2.0158 has completed, and then rebound towards 1.9400 could be seen.

For long term analysis, GBPUSD formed a cycle top at 2.0158 on weekly chart. Further fall towards 1.8000 to reach next cycle bottom is in favor.

gbpusd daily chart