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GBPUSD: Bearish, On The Defensive.

GBPUSD: With GBP weak and vulnerable into the new week, it faces further bear threats towards its Oct 09’2012 low at 1.5976. On a decisive break and hold below here, the stage will be set for more declines towards the 1.5774/78 level with breach turning attention to the 1.5457 level. Its weekly RSI is bearish and pointing lower suggesting further declines. Alternatively, GBP will have to return above the 1.6177 level to reverse its present weakness. This if seen will pave the way for a run at the 1.6215 level. This could push the pair further higher towards the 1.6350 level. A breach will allow for more gains towards the 1.6400 level. On the whole, GBP continues to face downside pressure as it looks to weaken further.