The pair maintains its medium term downtrend as it saw further weakness on the back of its previous week losses on Friday. Though this development saw GBP testing a low of 1.5235 level, it failed to hold below the 1.5270 level, its Oct 2011 low. It will have to forcefully violate there to convince the market of further bearish momentum possibly towards its .618 Fib Ret at 1.5187 (1.4229-1.6736 rally). A cut through here will set the stage for a run at its big psycho level at 1.5000 where a breather may occur. Its weekly RSI is bearish and pointing lower suggesting further weakness. Alternatively, on any recovery higher, the pair will have to return above the 1.5497 level, its Jan 10'2012 high to reduce its present weakness. This if seen will bring further strength towards the 1.5770/79 levels where a violation will send the pair further higher towards the 1.5885 level, its Nov 18'2011 high and then the 1.6161 level, its Oct 31'2011 high. On the whole, GBP looks to weaken further having continued to hold on its medium term bearish momentum.

Daily