GBPUSD: On The Verge Of Taking Out The 1.5768 Level

GBPUSD: The pair was seen declining further lower in early trading today testing below the 1.5768 level and suggesting further weakness of an eventual a loss of the mentioned level. We have highlighted this weakness in the short term in our weekly analysis and a loss of the 1.5768 level will turn focus lower to the 1.5500 level, its psycho level and then its .50 Ret (1.3652-1.7041 rally) at 1.5350. Our outlook for GBP remains lower shorter term as long as it continues to hold below its invalidated MT rising trendline. Its daily momentum indicators are bearish and trending lower supporting this view. Conversely, in order for the pair to reduce its current downside pressure, it requires a break and hold above the 1.6124 level. Further out, resistance is seen at the 1.6300 level, its psycho level and then the 1.6463 level, its Sept 23'09 high where a cap could be seen. All in all, GBP remains biased to the downside shorter term and now looks to head towards the 1.5768 level and possibly lower.

/