GBPUSD: Outlook for the pair has turned towards its hammer/Feb01'10/2010 lows at 1.5849/30 and even lower following its loss of momentum at the 1.6068 level and ahead of its strong resistance at the 1.6075 level on Wednesday. We now see risk below the 1.5849 level creating further downside scope towards the 1.5830 level, its Dec 30'09 low ahead of the 1.5706 level, its Oct 13'09 low where the pair may see a respite. Below there will resume its declines started at the 1.7041 level towards its .50 Fibonacci retracement (1.3501-1.7041 rally) at 1.5273. Its daily RSI is bearish and pointing lower suggesting further downside weakness. The risk to our current downside view will be a break and hold above the 1.6068/75 level which should trigger further upside towards the 1.6274 level, its Jan 28'10 high and its ST falling trendlineat 1.6360. We expect these levels to reverse roles and turn the pair lower if seen.

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