GBP-USD Set to Extend Weakness

The GBP-USD pair sold off strongly on Thursday suggesting further downside weakness is likely.

This is coming on the back of a failure ahead of the 1.5770 to 1.5779 levels. The focus has now shifted to the December low of 1.5359 with a loss there setting the stage for a move further lower toward the October low of 1.5270. Below here will extend further weakness toward its big psycho level at 1.5000. Its daily RSI is bearish and pointing lower supporting this view.

Alternatively, a firm break and close above the 1.5770 to 1.5779 levels will have to occur to reverse its current bear threats and then bring further upside offensive toward the Nov. 18 high of 1.5885. A breach will aim at the Oct. 31 high of 1.6161.

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On the whole, GBP's downside vulnerability remains as long as it continues to trade and hold below the 1.5770 to 1.5779 Levels.

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