GBPUSD: While GBP continues to remain vulnerable to the downside following its Friday’s sell off, its broader medium term bias still points to the upside. As long as it can trade and hold above the 1.5642/53 levels, its Feb 14/15’2012 lows, it should eventually return above the 1.5924 level, its Feb 08’2012 high and the 1.5990 level. This if seen will pave the way for a run at the 1.6074 level, its Nov’2011 high and possibly higher towards its Oct 31’2011 high at 1.6161. On the downside, the risk to this medium term outlook will be a continued weakness targeting the 1.5642/53 levels, its Feb 14/15’2012 lows. This zone is expected to hold when tested. However, if violated, further lower prices will shape up towards the 1.5497 level, its Jan 10’2012 high. On the whole, though still maintaining its medium term uptrend, GBP faces downside threats.
