GBP/USD closed lower on Monday as it extended this winter's decline and closed below the 62% retracement level of 2009's rally crossing. A short covering rally tempered early losses and the mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold, diverging but remain neutral to bearish hinting that additional weakness is possible. If it extends the decline off January's high, the 75% retracement level of 2009's rally crossing is the next downside target.
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