GBPUSD: Risk Points Lower Towards The 1.5706 Level.

GBPUSD: As the pair continues to extend its declines initiated from the 1.6875 level, its Nov 16'09 low following its break below its psycho level at 1.6000, threats of further downside is expected towards the 1.5706 level, its Oct 13'09 low. A breach will see a 100% price retracement (from 1.5706- 1.6875 levels) and open the door for additional downside towards its .50 Ret (1.3501-1.7041 rally) at 1.5273. Its daily RSI is bearish and pointing lower suggesting further downside. Conversely, immediate resistance lies at the 1.6000 level but above its Nov 25'09 high at 1.6744 and the 1.6875 level, its Nov 16'0-09 high must be traded to reverse its current downside threats and bring further gains towards its YTD high at 1.7041 level where a decisive invalidation will resume its medium term uptrend towards its .50 Ret (2.1160-1.3501 decline) at 1.7314. Overall, GBP remains vulnerable to the downside with the next key support standing at the 1.5706 level.

Weekly Chart: GBPUSD

GBPUSD

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