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Currency Outlook: GBPUSD

GBPUSD: Weakens, Tests Lower Prices.

 
GBPUSD: Continued bearish momentum saw the pair weakening further in early trading today to test a low of 1.6211. On a daily close below that level, the risk will be a return to the 1.6105 level, its May 18’2011 low and possibly lower towards the 1.6000 level, its major psycho level. Its daily RSI is bearish and pointing lower suggesting further declines.  Alternatively, for the pair to end its present bear pressure it will have to climb back above the 1.6546 level, its May 31’2011 high. This will clear the way for a run at the 1.6743 level, its 2011 high and then the 1.6877 level, its Nov’2009 high. A loss of the latter level will pave the way for further strength towards its bigger resistance at the 1.7039 level, its 2009 higher