GBPUSD: 1.4454

Short-Term Trend: weak downtrend

Outlook: GBPUSD initially rallied twd 1.4769 however then it was sold-off at the end of last week. With the rise to 1.4769, the previous downtrend has weakened a bit, but the late-week sell-off revives the bearish case here. It is now likely that wave (b) from the late May 2010 low is over and if so, a powerful decline in wave (c) is likely to be seen. Once the prices break below 1.4240, the next downside target is 1.4120 but much larger downside potential exists. On the upside, a move abv the minor Res at 1.4680 negates, rivives the previous expectations for a rise twd 1.4990 before the downtrend on the daily chart resumes...

Strategy: Shorts from 1.4550 are favorable against 1.4690. Target=1.1.3800