The Great British Pound (GBP) is currently at the lower end of the rising parallel channel (click on chart to enlarge) as it looks set to re-test support at 1.5200 which was the low on April 5, 2013 and yesterday. This level has added significance as it represents a nexus of the 23.6% retracement of the down move from 1.6381 to 1.4832, the low of the aforementioned rising channel and the low of the recently formed descending channel. A clear break of this level could see the pair target the key support level at 1.5027. Near term resistance lies at 1.5298 which if broken, would bring the key resistance at 1.5412, which is just below the 38.2% retracement of the 1.6381 to 1.4382 down move, into play.
The overall sentiment is still decidedly bearish as this rebound off the 1.4832 lows has to be seen as corrective. Furthermore, the 38.2% retracement level at 1.5424 has rebuffed the Pounds' price advance and a break of this would be needed to alleviate the strong bearish tone. If this were to happen then a quick move to 1.5600, which is also the 50% retracement level of the 1.6381 to 1.4382 down move, could be in the offing. As of now, the price action seems to favor a break below the 1.5200 level which could see the pair retest the 1.4832 lows in the not too distant future.