GBPUSD: Above 1.6692 Required To Reduce Downside Risks

GBPUSD - Although GBP closed higher the past week reversing most of its previous week losses, its negative rejection candle top coming in at 1.6692 must be taken out to relief the pair of further downside threats. While the mentioned level continues to hold as resistance ,GBP remains vulnerable to the downside and may likely break back into its falling channel and ultimately resume its ST declines triggered off the 1.7041 level. Supports are located at its Oct 26'09 low at 1.6249 and its Oct 30'09 high at 1.6124 level with an invalidation of the latter opening downside pressure towards the 1.5706 level printed on Oct 13'09. However, for this downside view to annulled, GBP will have to climb back above its key overhead resistance seen at the 1.6692 level where a decisive violation will create scope for further upside incursion towards the 1.6740 level, its Sept 11'09 high with an eventual loss of there setting the stage for a retarget of its YTD high at 1.7041. Beyond the latter will activate the resumption of its medium term uptrend on hold since Aug'09.Overall, threats remain to the downside shorter term as long as the pair holds below the 1.6692 level.