GBPUSD: Looks To Weaken Towards The 1.5892/30 Level

GBPUSD: Having lost its early Thursday upside momentum, GBP collapsed through the 1.6234/39 levels to close lower at 1.6140 at the end of the day. A follow-through lower is underway way suggesting more downside weakness could be seen towards the 1.6075 level, its Jan 22'10 low with a turn below there exposing the 1.5892 level, its Jan 07'10 low and then the 1.5830 level, its Dec 30'09 low. Below the latter will resume its short term declines started from the 1.6875 level(Nov 16'09 high)towards the 1.5706 level, its Oct 13'09 low where a break will see a 100% price retracement of its move from 1.5706-1.6875 and open the door for additional pressure towards its .50 Fibonacci retracement (1.3501-1.7041 rally) at 1.5273. Its daily stochasticsremains bearish and pointing lower supporting this view. On the upside, above the 1.6234/39 levels, its Dec 31'09/Jan 04'10 highs and the 1.6456 level must be traded to reverse our downside view and bring further strength towards the 1.6744 level, its Nov 25'09 high and possibly higher.