GBPUSD: As failure at the 1.5763 level saw the pair tumbling lower and taking back almost all of its recovery gains on Wednesday, threats of further downside are now shaping up towards its 2010 low at 1.5532. This view is consistent with its overall medium term downtrend and remains valid while the 1.5706/63 levels, its Oct 13'09 low/Feb 10'10 high are holding as resistance. With that said, decisively invalidating the 1.5532 level will resume its mentioned trend and bring further downside pressure towards its psycho level at 1.5400 followed by the 1.5276 level, its .50 Fib Ret (1.3501-1.7041 rally). However, to reverse its current downside vulnerability, GBP will have to break and hold above the 1.5706/63 levels to convince the market that it is ready to resume its corrective recovery towards the 1.5830 level, its Dec 30'09 low and then its psycho level at 1.6000. We still see the 1.5706/63 level capping if any offensive on the upside occurs.