Forex Market - As a reversal of its past week gains is now underway, the possibility of a return to the 1.5911 level, its Jun 26’2011 is now building up. If this level is breached, further weakness will develop towards the 1.5749 level, its Jan 25’2011 low and subsequently the 1.5700 level, its psycho level. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, a convincing break above the 1.6076 level, its May 23’2011 low will have to be established to halt its downside pressure and open the door for more gains towards the 1.6140 level. However, the ultimate test will be a return above the 1.6546 level, its May 31’2011 high. This if seen will turn upside risk towards the 1.6743 level, its 2011 high and subsequently the 1.6877 level, its Nov’2009 high. All in all, GBP remains biased to the downside and looks to return to the 1.5911 level and possibly lower.
