GBPUSD: Although closing marginally higher on Tuesday and struggling to strengthen further, downside threat remains while holding below the 1.6857/77 levels. The big question is can GBP break and hold above that zone. It is tough to break with poor price action on the upside but if it does break that area expect a run at the 1.6900 level to occur. A violation will target the 1.6950 level and then its big psycho level at the 1.7000 level. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support lies at the 1.6762 level where a break will turn focus to the 1.6719 level where a violation will aim at the 1.6683 level. A cut through here if seen will allow further downside towards the 1.6600 level. On the whole, GBP continues to retain its upside bias but faces pullback risks.
Article by www.fxtechstrategy.com