GBPUSD Analysis – Jan 20, 2009

GBPUSD drops below 1.4350 previous low support, suggesting that the downtrend from 2.0158 (July 15, 2008 high) has resumed. Deeper decline could be seen to 1.3500 zone in next several days. Initial resistance is now located at 1.4980 and key resistance is now at 1.5372, only rise above this level will signal reversal of the long term downtrend.

For long term analysis, GBPUSD remains in long term bearish movement. Further fall towards 1.3500 to reach the next cycle bottom on weekly chart is now in favor.

gbpusd daily chart