The GBPUSD maintained a bearish momentum yesterday , topped at the 1.6740 levels , and bottomed at the 1.6621 levels . This development leaves the pair targeting the 1.6580 levels , a halt is likely , but losing the 1.6580 levels would open 1.6520 next , strong support could be seen around this level , sustained trading below the 1.6520 will turn focus on the 1.6450 levels..
On the upside , a failure to hold below the 1.6621 levels could mean a return to the 1.6710 levels , break of 1.6710 will open main resistance at the 1.6740 levels , If 1.6740 fails on a daily basis , the pair will challenge the 1.6785 levels , a clear break will suggest resumption and sooner or later the pair will aim the psychological level 1.7000.
In all , as long as resistance 1.6740 holds on a daily closing basis , the GBPUSD will remain based to the downside in short term view with risk towards the 1.5680 levels ahead the of 1.6520 levels , sustained trading above the 1.6740 will resume the long term bullish trend and open 1.7000 levels.
In medium term outlook , we have strong demand within 1.6425/1.6600 range , this level should provide strong demand and bring reversal towards the 1.7000 levels , sustained trading below the 1.6425 on a daily basis will suggest large reversal is on the way ..