GBPUSD consolidated in a narrow range between 1.5770 and 1.6125 for several days. Deeper decline to 1.5300-1.5500 area could be seen next week and a break below 1.5770 level will signal resumption of downtrend. Resistance is now at 1.6125 followed by the falling trend line from 1.7042 to 1.6741, as long as the trend line resistance holds, downtrend will continue.
For long term analysis, GBPUSD has formed a cycle top at 1.7042 level on weekly chart. Further fall to 1.5000 area to reach next cycle bottom is expected in next several weeks.
