GBPUSD breaks above the falling trend line

Franco Shao from ForexCycle.com at 12/03/09

 

GBPUSD breaks above the falling trend line from 1.6875 to 1.6745, suggesting further rally to test 1.6745 resistance. However, next short term cycle is nearing, pullback would more likely be seen before breaking above this level. Key support is now located at 1.6550, a break below this level will indicate that a short term cycle top has been formed and the rise from 1.6271 has completed, then another fall could be seen to 1.6000 zone. On the other side, above 1.6745 will suggest that the fall from 1.6875 has completed at 1.6271 level already, then further rise is expected to follow and next target would be at 1.6950-1.7000 area.