GBPUSD: Sells Off On Negative Candle Formation, Targets 1.6255 Level (Technical Focus)

GBPUSD: With a loss of upside momentum on a shooting star candle seeing the pair following through sharply lower the past week, further weakness could be developing. In such a case, the 1.6255 level, its Aug 15’2011 low will be targeted followed by the 1.6110 level, its Aug 11’2011 low. Below there will create scope for more weakness towards the 1.6006 level and ultimately, the 1.5778 level, its July’2011 low. Its daily RSI is bearish and pointing lower supporting this view. On the upside, GBP will have to break and hold above the 1.6614 level to halt its present bear threats. This if seen will bring further upside gains towards the 1.6743 level, its 2011 high and then the 1.6900 level, its psycho level.