GBPUSD: GBP is now headed lower towards the 1.6226 level, its last week low, as a follow through lower on the back of its Friday weakness is now underway. However, the pair continues to hold and trade within its established sideways range and also hold its long term bullish bias.
A clearance of the 1.6422 level is required to bring the pair out of its range and trigger further gains towards the 1.6455 level followed by the 1.6720 level and subsequently the 1.6877 level, its Nov’2009 high. On the downside, a trade below the 1.6226 level will set the stage for a push lower towards the 1.6092 level and then 1.5964/35 levels (range bottom).
This will resume its weakness started from the 1.6422 level and then aim at the 1.5819 level, its Jan 19’2011 low. Further down, support lies at the 1.5700 level. Its daily RSI is bearish and pointing lower supporting this view.
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