GBPUSD Analysis – Dec 13, 2008

GBPUSD remains in down trend. The price action from 1.4557 is treated as consolidation to down trend. Further rebound towards 1.5534 could be seen next week. As long as 1.5534 resistance holds, we’d expect down trend to resume, and deeper decline is still possible to 1.4000 zone after consolidation. However, above 1.5534 level will indicate that the fall from 2.0158 (July 15 high) has completed.

For long term analysis, GBPUSD remains in long term bearish movement. Deeper decline to 1.4000 zone to reach the next cycle bottom on weekly chart is still in favor.

gbpusd daily chart