GBPUSD: Breaks And Trades Above The 1.6692/1.6740 Levels.
GBPUSD- GBP has broken and held above our highlighted (weekly analysis) resistances level s at the 1.6692 and the 1.6740 levels leaving further upside towards its YTD high at 1.7041. With a strong upside momentum now seen, the pair now looks to resume its medium term uptrend on hold since early Aug 05'09 and an eventual break of the 1.7041 level will herald that with further push higher expected towards its .50 Ret (2.1160-1.3501) decline at 1.7314 ahead of the 1.7630 level, its Oct 12'08 high(medium term outlook).This view is clearly supported by its daily RSI and stochastics which are bullish and pointing higher suggesting additional strength. In case of a pullback, the 1.6740 and the 1.6692 levels just eroded are expected to reverse roles and provide support thereby turning the pair higher again. Other supports below there if seen are positioned at its Oct 29'09 high at 1.6602, the 1.6464 level, its Nov 05'09 low and the 1.6260 level, its Nov 03'09 low. Overall, GBP has its eyes on further upside prices having cleared its key overhead resistance levels at the 1.6692 and 1.6740 levels.
Daily Chart: GBPUSD