GBPUSD: With the pair following through lower on the back of its Monday weakness, risk of further declines is now building up towards the 1.5424 level, its Nov 25’2011 low. On further bearish momentum, GBP should weaken further towards the 1.5270 level, its Oct 06’2011 low where a break will resume its long term downtrend towards its psycho level at 1.5000. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, on any recovery higher, the pair will aim at the 1.5660 level where a reversal of roles as support is expected. However, a violation of there will turn upside risk towards the 1.5779 level. Above here if seen will pave the way for a run at the 1.5885 level, its Nov 18’2011 high and then the 1.6161 level, its Oct 31’2011 high. On the whole, GBP remains weak and vulnerable with eyes on the 1.5424 level.
