GBPUSD: Outlook Lower Below Key Support.

GBPUSD: Our outlook on GBP remains consolidative to downside as long as it trades and holds below the 1.5774/78 levels. This leaves risk of an eventual return to the 1.5457 level where a breach will set the stage for a move lower towards the 1.5391 level. A clearance of here will turn focus to its Jun 2012 low at the 1.5266 level. Further down, support lies at its July 18’2010 low at 1.5122. Its daily RSI is bearish and pointing lower supporting this view. Conversely, the pair will have to break and hold above the 1.5774/78 levels to end its present weakness and trigger price extension. In such a case, the 1.5857 level will come in as the next upside where a violation will expose the 1.6000 level. On the whole, GBP faces downside risks.