TEN Exclusive: GBPUSD – Immediate Downside Pressure

Written by Mohammed Isah, FX Tech Strategy

GBPUSD – Although GBP is maintaining a valid immediate downside bias having failed at the 1.5195 level on Monday, it will have to firmly break and hold below its 2010 low at 1.4782 to convince the market that its correction activated from the 1.4782 level has ended. If that occurs, a resumption of its medium term downtrend now on hold will resume towards the 1.4511 level, its April 26’10 low with a loss of there targeting the 1.4396 level, its April 19’10 high. Its daily RSI  remains supportive of this view. Alternatively, a return back above the 1.5195 level will call for further corrective recovery strength towards its Feb 19’10 low at 1.5343 where we expect the bears to come in and push the pair back down again in line with its broader weakness. On the whole, though medium term biased to the downside, corrective to consolidation of its declines from the 1.7041-1.4782 levels  continues to shape up.

Support        Comments
1.4852           Mar 02’10 low
1.4782           2010 low
1.4511           April 26’10 low

Resistance   Comments
1.5195           Mar 08’10 high
1.5343           Feb 19’10 low

Directional Bias
Nearer Term – Mixed
Short Term – Bearish
Medium Term – Bearish

Performance(%)
Past Week: -0.69%
Past Month: -4.59%
Year To Date: -6.23%

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