GBPUSD: Having tumbled off the 1.5814 level and ahead of its strong resistance at the 1.5830/49 levels, its Dec 30'09/Feb 01'10 lows, we look for the pair to weaken towards its Feb 16'10 low at 1.5626. Below there will allow for more declines towards its 2010 low at 1.5532 with a break resuming its medium term downtrend towards its psycho level at 1.5400 followed by the 1.5276 level, its .50 Fib Ret 1.3501-1.7041 rally. Its daily RSI has turned lower supporting this view. Conversely, to revert its current downside weakness, GBP must break and hold above the 1.5814 level thereby creating scope for further recovery towards the 1.5830/49 levels, its Dec 30'09/Feb 01'10 lows and then its psycho level at 1.6000. We expect a cap at these levels to turn the pair back down if tested in line with its broader weakness but if that zone snaps, further upside threat could be seen targeting its Feb 03'10 high at 1.6068.
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