GBPUSD:  Weakness To Target The 1.6306 Level

GBPUSD- Weakness triggered off the 1.6740 level on Sept 11'9 continues to drive the pair further declining in early trading today to as low as 1.6464 as at the time of this analysis. While this persists, GBP should trade lower and possibly target its MT rising trendline initiated at the 1.2456 currently at 1.6306 where we envisage a cap to turn the pair back up. However, if a loss of there occurs further downside could shape up towards the 1.6111 level, its Sept 01'09 low. Its daily RSI remains supportive of this view. On the other hand, in order to reverse its current declines, GBP must break back and hold above the 1.6740 level to clear the way for more upside gains targeting its YTD high at 1.7041 with an eventual breach of there resuming its MT uptrend which is currently on hold. On the whole, though weakening, as long as the pair holds above its MT rising trendline drawn off the 1.2456 level, bias remains higher medium term.

Support       Comments

1.6306          MT rising trendline

1.6111          Sept 01'09 low

1.6034/00     July 13'09 low/psycho level

Resistance   Comments

1.6622          Aug 16'09 high

1.6742          July 30'09 high

1.7041          Aug 05'09 high

Daily Chart: GBPUSD