GBPUSD Analysis – Jan 17, 2009

GBPUSD consolidated in a range between 1.4350 and 1.5722 for several weeks. Rebound to 1.6500 zone would more likely be seen before breaking below 1.4350 level. Key resistance is now located at 1.5372, a break above this level will indicate that the downtrend from 2.0158 (July 15, 2008 high) has completed, and then further rally could be seen to follow.

For long term analysis, GBPUSD might be forming a long term cycle bottom at 1.4350 on weekly chart. Key resistance is located at 1.5722, a break above this level will confirm the cycle bottom.

gbpusd daily chart