GBPUSD: While the 1.5326 level may have held and turned the pair back up to close the week marginally lower, GBP’s medium term downside risk is not over yet. This leaves a return to the 1.5326 level and the 1.5270 level, its past week low a possibility. Below this zone will resume its medium term weakness with eyes on the 1.5122 level, its July 18’2011 low. Further down, support lies at 1.5000 level, its psycho level. Its weekly RSI is bearish and pointing lower suggesting further weakness. Alternatively, on continued recovery on the back of its Friday gains, the 1.5633 level, its Sept 19’2011 low will be targeted with a loss of there setting the stage for further strength towards the 1.5779 level, its July 12’2011 high. A reversal of roles as resistance is expected to turn the pair back down at that level. Further resistance stands at the 1.5995 level, its broken trendline resistance.
