Short Term Analysis - September 19, 2007

GBPUSD formed a cycle top at 2.0365 on daily chart. However, the fall from 2.0365 is treated as correction to the up trend, rise above 2.0652 is still in favor, and a break above 1.0365 previous high will confirm such case. Key support is at 1.9652, only fall below this level will signal the resumption of the down trend, and further fall towards 1.9500 can be seen. For long term analysis, GBPUSD is bottoming at 1.9652 on weekly chart, key resistance is at 2.0365, a break above this level will confirm the cycle bottom, and further rise towards 2.1000 to reach the next cycle top is expected to follow.