GBPUSD- Looks To Retarget The 1.6692 Level.
GBPUSD- The pair maintained an offensive tone on Thursday cutting through its strong resistance at the 1.6466 level, its Sept 23'09 high and turning risk to the upside towards the 1.6692 level, its Oct 23'09 high. Though immediate risk remains higher, we want to see a convincing violation of the 1.6692 level which will put an end to its collapse off there(1.6692) last week and clear the way for a move higher 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. We retain our short term downtrend outlook on the pair while trading below the 1.6692 level. In such a case, immediate support lies at the 1.6358 level followed by the 1.6239 level where its Oct 19'09 low is located ahead of its Sept 30'09 high at 1.6124 with a break creating scope for further weakness towards the 1.5708 level printed on Oct 13'09. Below the latter will set off the resumption of its short term downtrend. On the whole, GBP must break and hold above the 1.6692 level to reverse its current downside threats and signal a recapture of the 1.6740 level.
Daily Chart: GBPUSD