GBPUSD- The shooting star triggered declines off the 1.7041 level came to a halt the past week putting the pair on a positive higher close at 1.6319. Though still biased to the downside as it is still trading below its broken MT rising trendline, with the mentioned recovery gains, GBP should build on that strength further with the initial target residing at the 1.6542 level, its Aug 24'09 high ahead of its Aug 21'09 high at 1.6622. Above there will put the GBP back into its broken trendline and clear the way for more upside gains towards the 1.6716 level, marking its Aug 10'09 high and then its YTD high standing at 1.7041 where a turn above there will resume its medium term uptrend now on hold. However, if the recovery now seen fades, reversal lower will follow towards the 1.6111 level, its Sept 01'09 low with a break of the latter pushing the pair further lower towards the 1.5982 level, which marks its July 08'09 low and next the 1.5798 level, its Jun 07'09 low. Overall, even though declines triggered off the 1.7041 level remains to the downside, that weakness is now being challenged by a recovery higher.

Directional Bias:

Nearer Term -Bearish

Short Term -Mixed

Medium Term -Bullish

Performance in %:

Past Week:: +0.76%

past Month: -2.55%

Past Quarter: +14.74%

Year To Date:: +12.03%

Weekly Range:

High -1.6411

Low -1.6111li

Weekly Chart: GBPUSD

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