The pair is now seen taking back some of its two-day gains following a lower weekly close the past week. This development has opened the door for more declines towards the 1.5424/10 levels where a violation will target the 1.5270 level, its Oct 2011 low. A break of here will extend further weakness towards its big psycho level located at 1.5000. Its daily and weekly RSI are bearish and pointing lower suggesting further weakness. Alternatively, GBP will have to break and hold above its Dec 13'2011 high at 1.5627 level and the 1.5779 level to halt its bear threats and open the door for further recovery higher towards the 1.5885 level, its Nov 18'2011 high. Further out, a breach of the 1.5885 level will turn upside risk towards the 1.6161 level, its Oct 31'2011 high. On the whole, the pair's downside vulnerability remains intact with eyes on the 1.5424/10 level and beyond.
Join the Discussion