GBP-USD: Threats Remain To The Downside

By Mohammed Isah of fxtechstrategy.com

NEW YORK (TheStreet) -- GBP-USD: The pair may have followed through lower to build on its previous week losses but needs a decisive break and close below the 1.4473 level, its 2010, to resume its broader weakness.

For a chart on GBP-USD click here.

If this materializes, the pair should push further lower towards the 1.4511 level, its April 26 2009 low, and then its April 2009 low at 1.4396. Its weekly studies are bearish and pointing lower, suggesting further weakness. To reduce its current downside weakness, a return above the 1.5052 level, its May 10 2010 high must occur to pave the way for a more strength towards the 1.5127/25 levels. A reversal of roles is likely there, thus turning the pair back down again.

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However, if a loss occurs there, the 1.5389 level and then its April 15 2010 high at 1.5521 will be targeted. Beyond that level will resume its recovery towards the 1.5574 level, its Feb 23 2010 high and then the 1.5814 level, its Feb 17 2010 high.

Overall, with the bears still in control, threats remain to the downside.

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