GBPUSD pulled back from 1.6216
October 8, 2012 2:37 am in Forex Analysis
GBPUSD failed to break above the resistance of the downward trend line on 4-hour chart, and pulled back from 1.6216 last Friday, suggesting that a cycle top has been formed on 4-hour chart. However, the fall from 1.6216 would possibly be correction of the uptrend from 1.6066, as long as 1.6066 support holds, another rise to re-test the trend line resistance is still possible, a clear break above the trend line could bring price to 1.6500 area. On the downside, a breakdown below 1.6066 support will indicate that the pair remains in downtrend from 1.6309, then deeper decline to 1.6000 area could be seen.