GBPUSD Analysis – Dec 20, 2008

GBPUSD breaks above 1.5534 resistance as reaches 1.5722 only. Consolidation in a range between 1.4466 and 1.5722 would more likely be seen in a couple of weeks. Initial support is located at 1.4466, a break below this level will signal resumption of long term down trend, and then deeper decline could be seen to 1.4000 zone. However, as long as 1.4466 level holds, we’d expect one more rise towards 1.6500 level.

For long term analysis, GBPUSD formed a cycle bottom at 1.4466 on weekly chart, and is now in consolidation of long term down trend. Rebound towards 1.6500 zone is expected.

gbpusd daily chart