GBP/USD is now seen facing downside weakness after rallying strongly on Friday to close higher at 1.5201.
While this has halted its corrective recovery efforts, we don't think it has ended suggesting its current price action is corrective of its rally from the 1.4782 level to the 1.5216 level. On further weakness, its .50 Fib Ret (1.4782-1.5216 rally)/March 12 low at 1.5041/25 will be targeted ahead of its .618 Fib Ret/psycho level at 1.5000/2.
We expect a combination of these levels to provide a strong support and turn the pair higher again. Further down, its March 10 high at 1.4871 and its year-to-date low at 1.4782 come in as the next supports. Alternatively, to reverse its present downside pressure, a break and hold above the 1.5216 level is required to set the stage for further recovery towards the 1.5343 level, its Feb.19 low, ahead of our bigger target standing at the 1.5574 level, its Feb. 23 high.
In summary, except the 1.4782 level is violated, we retain our consolidation to corrective view on GBP with eyes on the 1.5216 and the 1.5343 levels.