GBPUSD: Looks To Push Further Lower

GBPUSD- The pair continues to face downside pressure selling off sharply lower to close the week at 1.6260, slightly below its Nov 27’09 low at 1.6267. Although our nearer term bias remains lower, we would like to see GBP break and hold below its longer term declining trendline to convince the market of further lower prices and a halt in its broader medium term uptrend. If this materializes, its Oct 30’09 high at 1.6124 will be aimed at ahead of its major swing low at the 1.5706 level, its Oct 13’09 low. A break below the latter will break its pattern of higher highs and lows and trigger further downside weakness towards the 1.5351 level, marking its May 10’09 high. Its weekly RSI is supportive of this view as it is bearish and trending lower. However, 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 gains towards the 1.7041 level, its YTD high and then its .50 Ret (2.1160-1.3501 decline) at 1.7314. On the whole, though vulnerable to the downside, GBP must break and hold below its LT rising trendline to continue the mentioned downside and target further lower prices.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which the author incur any responsibility. The does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report