GBPUSD’s bounce from 1.5829 reaches 1.6456 level only. The subsequent pullback suggests that a cycle top is being formed on daily chart. Deeper decline to test 1.5829 key support is expected next week. A breakdown below this level will confirm the cycle top and indicate that the downtrend from 1.6875 has resumed. Resistance is at 1.6456, only rise above this level could take price back to range trading between 1.5708 and 1.7042.
For long term analysis, GBPUSD has formed a cycle bottom at 1.5708 level on weekly chart. Sideways consolidation in range between 1.5708 and 1.7042 is expected in a couple of weeks and another fall towards 1.4800 is possible.
