GBPUSD- Still Vulnerable To The Downside.

GBPUSD- Although GBP maintained a positive close on Tuesday, that occurred below the 1.6466 level, its strong resistance which must be taken out to signal a move higher targeting the 1.6692 level, its Oct 23'09 high. Until this materializes, downside pressure is still expected towards its Sept 30'09 high at 1.6124 where a break will create scope for further weakness towards the 1.5708 level printed on Oct 13'09. Below there will set off the resumption of its short term downtrend. However, for our downside view to be invalidated, a close above the 1.6692 level will have to occur bringing further upside incursion towards the 1.6740 level, its Sept 11'09 high  where a break higher will pave the way for a run at its YTD high at 1.7041. Our short term outlook on GBP remains to the downside. On the whole, GBP must break and hold above the 1.6692  level to reverse its current downside threats.

Daily Chart: GBPUSDwidth=400