GBPUSD: Follow Through On Loss Of Upside Momentum Triggered

GBPUSD: As indicated in our Tuesday analysis, having lost momentum at the 1.6742 level and collapsed to close lower forming a shooting star candle on Tuesday ,GBP was see heading lower following through on that weakness in early trading today. Continued declines will leave the 1.6427 level, its Jun 29'09 low vulnerable where a break will highlight 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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