GBPUSD: The pair opened the week higher following through on its Friday gains in early trading today. Despite its current strength, GBP remains biased to the downside while trading and holding below the 1.6234/39 levels. We look for the pair to turn back down towards its Jan'07'10 low at 1.6056 initially with a clean invalidation of there turning focus to its Dec 30'09 low at 1.5830. A decisive invalidation of that level will clear the way for a run at the 1.5706 level, its Oct 13'09 low with a sustained  loss of there seeing a 100% price retracement (from 1.5706- 1.6875 levels) and opening the door for additional downside towards its .50 Ret (1.3501-1.7041 rally) at 1.5273. This view is consistent with its short term downtrend triggered off the 1.6875 level. On the upside, if a break and hold above the 1.6234/39 levels is established then we should see further corrective upside towards the 1.6409 level, its Dec 16'09 high where a cap may be seen thereby turning the pair lower. Further out, upside objectives are located at its Nov 25'09 high at 1.6744 and the 1.6875 level, its Nov 16'0-09 high ahead of its YTD high at 1.7041 level. On the whole, though GBP is currently seen strengthening, it still remains vulnerable to the downside for a retarget of the 1.5830 level and then the 1.5706 level. 

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