GBPUSD: Bears Still Remain In Control.
GBPUSD: The pair remains biased to the downside medium term as it looks to weaken further. As long as it holds below its major resistance at the 1.6300 level, our bias remains lower. This leaves the risk of further weakness towards the 1.5266 level with a cut through here targeting the 1.5000 level. We expect this level to provide a strong support and turn the pair higher but if this fails, bear threats could target the 1.4800. Its monthly RSI is bearish and pointing lower supporting this view. On the upside, GBP will have to violate the 1.6300 level to convince the market of an end to its medium term weakness. This could push it further higher towards the 1.6614 level, its Aug 2011 high. Further out, resistance resides at the 1.6738 level. On the whole, GBP remains biased to the downside in the medium term