GBPUSD: Having closed lower following its failure at the 1.5380 level the past week, the pair is now eyeing the 1.4871 level, its Mar 10'10 low. We expect there or even its 2010 low at 1.4782 to hold on initial test. The later level preserves its current corrective to consolidation phase and a break of there will put our corrective to consolidative view on hold and bring further downside pressure towards the 1.4511 level, its April 26'10 low and possibly lower. Its weekly RSI is bearish and pointing lower suggesting further downside. Alternatively, while its current bear pressure is limited to the 1.4871 and 1.4782 levels, we look for the pair to continue its consolidation to corrective price activity. Resistance comes in at the 1.5343/80 levels, its Feb 19'10 low/Mar 17'10 high with a break triggering the resumption of its corrective recovery towards its bigger resistance standing at the 1.5574 level, its Feb 23'10 high.

width=400