GBPUSD: The pair continues to trade within its range between its April 15'10 high at 1.5521 and the 1.5127/25 levels (April 06/28'10 lows). As can be seen on the daily chart, GBP is presently weakening and now threatens an extension of that weakness towards its range low at the 1.5127/25 zone. This is coming on the back of its Friday weakness activated off the 1.5389 level. Despite this weakness, the pair still maintains its broader consolidation to corrective tone activated from the 1.4782 level. Furthermore, while the 1.5127/25 zone holds as support, we expect a retest of its range high at the 1.5521 level with a turn above there resuming its corrective recovery started from its 2010 low at 1.4782 and targeting the 1.5574 level, its Feb 23'10 high and then the 1.5814 level, its Feb 17'10 high. Alternatively, a break of the 1.5127/25 zone will warn of a return to its Mar 25'10 low at 1.4796 and next its 2010 low at 1.4782 level. This zone preserves GBP's present broader consolidation to corrective price action. Therefore, a break will resume its medium term declines towards the 1.4511 level, its April 26'10 low and then its April'09 low at 1.4396.
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