GBPUSD: Weak And Vulnerable On Correction

While GBP may be vulnerable to the downside, its broader medium term bias remains higher despite its corrective scenario. As long as it holds above the 1.6059/84 levels and its rising trendline, the above view remains intact. In such a case, the 1.6293 level, its weekly 200 ema will be targeted on ending its present price hesitation followed by the 1.6451 level. On the downside, below the 1.6059 level will have to occur to reverse its medium term upside now on hold. However, the bigger support resides at its trendline and the 1.5642/53 levels, its Feb 14/15'2012 lows where a breach if seen will aim at the 1.5497 level, its Jan 10'2012 high. Its daily RSI is bearish and pointing lower supporting this view. On the whole, the pair continues to hold on to its medium term uptrend though correcting.