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GBPUSD: Sells Off Through Rising Trendline, Targets The 1.5778 Level (Technical Focus)

GBPUSD: With an attempt at reversing its Monday losses failing and seeing the GBP selling strongly through its medium term falling trendline today, the stage is now set for a run at the 1.5778 level, its July’2011 low.This is coming on the back of a continuation of its weakness triggered from the 1.6614 level. Below the 1.5778 level will pave the way for a move further lower towards the 1.5700 level, representing its psycho level. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, on any recovery, GBP will target the 1.6110 level, its Aug 11’2011 low where a reversal of roles is likely to occur and turn the pair back lower. Further out, the pair will have to break and hold above the 1.6451 level and then the 1.6614 level to end its bear threats and turn risk towards the 1.6743 level, its 2011 high.