GBPUSD Analysis – Feb 28, 2009

GBPUSD continues to move sideways above 1.4051 support. Consolidation in a range between 1.3503 and 1.4985 is expected in a couple of weeks. Deeper decline to 1.3700 could be seen if 1.4051 support gives way. Near term resistance is at 1.4660 and key resistance is located at 1.4985, above this level will indicate that the fall from 2.0158 (July 15, 2008 high) has completed and the following uptrend will bring price to 1.6000 zone.

For long term analysis, GBPUSD might be forming a cycle bottom at 1.3503 level on weekly chart. Key resistance is now at 1.4985, a break above this level will confirm the cycle bottom.

gbpusd daily chart