GBPUSD Analysis – Sep 14, 2008

GBPUSD rebounded from 1.7445 and broke above the down trend line resistance. Sideways consolidation in a range between 1.7445 and 1.8100 is expected. As long as 1.8100 resistance holds, we’d expect down trend to resume and deeper decline is still possible to 1.7000 zone, a break below 1.7445 will signal the resumption of down trend.

For long term analysis, GBPUSD is in long term bearish movement. Further fall could be seen to 1.6500-1.7000 area in next several weeks.

gbpusd daily chart