GBPUSD: Continued Weakness To Target 1.5802 Level And Beyond.
With a second week below its invalidated MT trendlineseeing the pair taking out some of its key supports at the 1.6112,1.6000 & 1.5982 levels to close lower at 1.5927 last week, threats remain for GBP to continue to face downside side pressure in the days ahead. That puts the pair on the path to further downside towards its Jun 08'09 low at 1.5798 with a cut through there allowing further declines towards the 1.4808 level, its Dec 14'08 high. We envisage that these two levels should provide a respite for a halt in its nearer term declines if tested. Both its RSI and stochasticsare pointing lower suggesting further downside gains. Upside gains if triggered will target the 1.5982 level with break and close above there creating scope for further upmovetowards the 1.6112 level . Beyond there will clear the way for a rum at the 1.6468 level where its Sept 23'09 high resides with a breach of there extending gains towards the 1.6740 level, its Sept 11'09 high and then its YTD high residing at the 1.7041 level. All in all, having continued to weaken, GBP remains vulnerable to the downside nearer term.