GBPUSD: Faces Bear Threats, Vulnerable Below The 1.5774/78 Levels.

[FXTechstrategy Team]

GBPUSD: With GBP closing slightly lower the past week and remaining vulnerable to the downside, risk is building up for more declines. As long as the 1.5774/78 levels cap, the broader risk remains lower. This could see the pair targeting the 1.5489/57 levels where a violation will pave the way for a move lower towards the 1.5391 level. A clearance of here will turn focus to its Jun 2012 low at the 1.5266 level. Further down, support lies at its July 18’2010 low at 1.5122. Conversely, the pair will have to break and hold above the 1.5774/78 levels to end its bear threats and trigger price extension. In such a case, the 1.5857 level will come in as the next upside where a violation will expose the 1.6000 level. On the whole, GBP faces downside risks despite recovery attempts.