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Technical Focus: GBPUSD

GBPUSD: The pair’s recovery is now fading suggesting it could return to the 1.5270 level, its Oct 2011 low.A break of there will aim at the 1.5235 level with a cut through that level extending further declines towards its .618 Fib Ret at 1.5187 (1.4229-1.6736 rally). Further down, its big psycho level at 1.5000 comes in as the next downside target. Alternatively, the risk to this analysis will be a violation of the 1.5406 level. This will clear the way for a move towards the 1.5770/79 levels. Above here will have to be traded to trigger further strength towards the 1.5885 level, its Nov 18’2011 high. On the whole, GBP’s downside vulnerability remains intact despite its current attempt at recovering.