GBPUSD: Takes Out Key Support, Set To Recapture The 1.5805 Level

With the pair selling off and breaking below its medium term rising trendline, further bearishness is expected in the days ahead. On continued weakness, GBP will target the 1.5805 level, April 05'2012 low with a violation of there allowing for more weakness towards the 1.5642/53 levels, its Feb 14/15'2012 lows. A breach of here if seen will aim at the 1.5497 level, its Jan 10'2012 high. Its daily RSI is bearish and pointing lower supporting this view. The alternative scenario is for the pair to halt its weakness and then return above its trendline. This will target the 1.6180 level with a turn above here calling for a run at the 1.6293 level, its weekly 200 ema. Further out, resistance lies at the 1.6451 level. On the whole, the pair continues to hold on to its downside pressure having violated its rising trendline.