GBPUSD: Faces Downside Pressure Nearer Term

GBPUSD: Outlook for GBP continues to point to the downside nearer term following its recent failure at the 1.6427 level, its Jun 29'09 and its subsequent collapse. It closed lower Thursday and was seen facing downside pressure in early trading today. As long as its shooting star high at the 1.6742 level remains unbroken and GBP is limited to its sideways trading range, it remains vulnerable to the downside. Support is initially seen at the 1.6209 level, its Jun 16'09 low followed by the 1.6000 level, its psycho level ahead of the 1.5801 level, its Jun 08'09 low. The last two levels are expected to reverse roles and provide support if tested. Its daily RSI Remains supportive of this view as it is heading to the downside. On the upside, a close back above the 1.6662 and 1.6742 levels must occur to halt its negative nearer term outlook and resume its medium term uptrend towards the 1.7000 level, its psycho level and possibly higher. All in all, with a failure on upside attempts and a return back into its sideways trading range seen, break out of that range is required to create meaningful directional moves.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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