GBPUSD: Turns Down Ahead Of 1.5863 Levels, Digests Recovery Gains.

GBPUSD: Turns Down Ahead Of 1.5863 Levels, Digests Recovery Gains.

GBPUSD: The pair is now digesting its recent corrective run to the upside, turning back lower and taking back its Friday gains during Monday trading session. Though vulnerable to the downside, as long as it holds above the 1.5713/1.5687 levels, we look for GBP to return above the 1.5850/63 levels, its Sept 15’2011/Oct 14’2011 highs. However, if the pair sees a violation of the 1.5713/1.5687 levels, further weakness will develop towards its Oct 12’2011 low at 1.5541. Further down, support comes in at the 1.5270 level and next the 1.5122 level, its July 18’2011 low. Its daily RSI has turned lower supporting this view. Alternatively, a return above the 1.5850/63 levels will resume its corrective recovery towards its Sept 08’2011 high at 1.6079 level and followed by the 1.6204 level, its Sept 06’2011 high. On the whole, GBP may have halted its recovery and reversed its Friday gains but while it holds above the 1.5713/1.5687 levels, its recovery tone remains intact.

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