GBPUSD: A follow-through lower on Friday gain was seen yesterday as GBP continues to trade below its broken rising channel and while that continues to occur, we see risk for further downside weakness. In such a case, its April 22’09 low at 1.4396 will be targeted ahead of the 1.4305 level, its Mar 06’09 high before the 1.4111 level, its Mar 30’09 high. Its daily RSI is now pointing lower suggesting further downside weakness. To the topside, initial resistance lies at the 1.4662 level, its Feb 23’09 high followed by its Jan 16’09/Feb 09’09 highs at 1.4981/86 with a cut through there bringing further price acceleration towards the 1.5066 level, its April 16’09 high. Above the latter will clear the way for the resumption of the pair’s recovery started at the 1.3655 level, its Mar 11’09 high. All in all, with a break and hold below its rising channel achieved, threats remain to the downside.

Support / Comments

1.4396 /April 22’09 low

1.4305 / Mar 06’09 high

1.4111 / Mar 30’09 high

Resistance / Comments

1.4662 / Feb 23’09 high

1.4986/59 / April 06’09/Feb 09’09 highs

1.5066 / April 16’09 high