GBPUSD (1.3383): The British pound close at an eight day low yesterday with the bearish close suggesting further decline in prices. The bullish flag pattern remains invalidated with price action closing below the support at 1.1348 – 1.1344. A modest rebound could be expected with the breached support level likely to turn to resistance. This puts further downside pressure in GBPUSD with the next main support at 1.3236 likely to be tested. The decline to this support level will mark a correction in the GBPUSD rally but could also mean that a new bullish leg could be forming at this support.
