GBP-USD: Bearish Trend Intact

By Mohammed Isah of fxtechstrategy.com

NEW YORK (TheStreet) -- GBP-USD: The outlook for the pound-dollar currency pair continues to point to the downside after bear pressure pushed it lower this week.

This week's losses come on the back of losses in the previous week.

Further downside risk now lies toward the 1.5326 level, the Aug. 31 low. On a turn below that level, the pair will target 1.5122, the July 21 low. If it breaks the latter level, it will head lower still.

The weekly relative strength index (RSI) is bearish and pointing lower, supporting our view.

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Alternatively, to reverse this view, the pair must return above the 1.5470 level. If it does, it would create scope for further recovery toward 1.5701, the Aug. 16 high. Above there, the pair would eye 1.5996, its Aug. 8 high, and then 1.6274, its Jan. 24 high.

--Written by Mohammed Isah.

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