GBPUSD: Loses Higher Corrective Momentum 

GBPUSD- The pair's inability to break back and hold above its invalidated rising trendline saw it turning back lower Wednesday to close at 1.6353. It was seen following through lower in early trading today and now looks to head towards its Sept 21'09 low at 1.3132 with a break below there accelerating further declines towards the 1.6112 level, its Sept 02'09 low where a ceiling is expected. Below there if seen will target the 1.5982 level, which marks its July 08'09  and then the 1.5742 level, its July 30'09 high. Its daily RSI has turned lower supporting this view. On the other hand, GBP must break back above its broken trendline to reduce its current downside pressure and open up additional upside towards the 1.6566 level ahead of the 1.6742 level, its July 30'09 high and then possibly higher targeting its YTD high at 1.7041. Above the latter will activate the resumption of its medium term uptrend now on hold. On the whole, having failed on upside attempts, GBP now looks to retarget the 1.3132 level and possibly lower.

Support       Comments

1.6132/12     Sept 21'09/Sept 01'09 lows

1.6034/00     July 13'09 low/psycho level

1.5742          July 30'09 high

Resistance   Comments

1.6350          MT trendline

1.6401          Sept 15'09 low

1.6740          July 30'09 high

 Daily Chart: GBPUSD