With a third day of bearishness now underway following its price failure at the 1.6451 level, further downside pressure is expected.GBP is now trading a few pips below its Aug 26'2011 low at 6209 and convincing break and close below there will open the door for further declines towards the 1.6006 level and ultimately, the 1.5778 level, its July'2011 low. Its daily RSI is bearish and pointing lower suggesting further weakness. On the upside, GBP will have to break and hold above the 1.6451 level and then the 1.6614 level to halt its present bear threats. This if seen will bring further upside gains towards the 1.6743 level, its 2011 high and then the 1.6900 level, its psycho level.

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