GBPUSD formed a short term cycle top at 1.6456

Franco Shao from ForexCycle.com at 01/21/10

 

GBPUSD formed a short term cycle top at 1.6456 level on 4-hour chart. Range trading between 1.6210 and 1.6456 is expected later today. As long as 1.6210 key support holds, the price action from 1.6456 could be treated as consolidation of uptrend from 1.5829 and one more rise towards 1.6550 is still possible. However, a breakdown below 1.6210 level will indicate that the rise from 1.5829 has completed at 1.6456 level already, then the following downtrend could bring price back to re-test 1.5829 previous low support.