The pair continues to maintain its bearishness triggered from the 1.6614 level as it was seen testing the 1.6110 level in early trading today. A decisive break and hold below the level is required to activate further declines towards the 1.5846 level, its rising trendline bottom. This level is expected to hold as support if tested but if taken out further decline will build up towards the 1.5778 level, its July'2011 low and then the 1.5700 level, its psycho level. Its daily and weekly RSI are bearish and pointing lower supporting this view. 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. All in all, GBP remains vulnerable to downside nearer term.

Daily