GBPUSD Analysis – Dec 27, 2008

GBPUSD is testing 1.4466 previous low support, a break down below this level will signal deeper decline towards 1.4000 zone. As long as 1.4466 level holds, we’d expect up trend to resume, and one more rise above 1.5722 is still in favor.

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