by Mohammed Isah of FXTechstrategy.comGBPUSD-GBP closed lower again for the fourth week in a row reversing its Thursday gains and tumbling down to as low as 1.8505 on Friday, its lowest price seen since July 26’06.With this new development its descending triangle break out price objective at 1.8270 should now be targeted where a loss will put the pair in position to aim at the 1.8177 level, its July 17’06.Its weekly and monthly RSI and Stochastics are negative and pointing lower implying further downside pressure. Nearer term, holding off downside weakness will leave the pair trading a range (clearly seen on the daily chart) between 1.8795 and 1.8505 until a break either way materializes. Resistance is however located at the 1.8795 level, its August 21’08 high followed by its Nov’06 low at 1.8836 and then the 1.9180/42 area, its Mar’07 low/ August’06.In short, the past week’s price action now suggests a follow-through to the downside on its medium term declines.
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