GBPUSD Analysis. Jan 23, 2008

GBPUSD’s down trend remains, the fall from 1.1161 extended to as low as 1.9337, and the rebound from 1.9337 is treated as consolidation to the down trend. Further decline towards 1.9200 area to reach the next cycle bottom on daily chart is still possible after consolidation. Near term resistance is at 1.9789, and followed by the down trend line from 2.1161 to 2.0830, and as long as the trend line resistance holds, we’d expect down trend to continue.

For long term analysis, the pair is in long term bearish movement. Further fall towards 1.8000 area to reach the next cycle bottom on weekly chart is expected.

gbpusd daily chart