GBPUSD: Nearer Term Risk Remains Higher

GBPUSD - With a reversal off its intra day low at 1.6599 pushing the pair higher though closing marginally lower at 1.6738, threats are seen towards its immediate barrier seen at the 1.4842 level, its Nov 09'09 high. A sustained break of there will turn attention to the 1.7041 level where its YTD high is standing with a penetration of there triggering the resumption of its medium term uptrend now on hold towards its .50 Ret (2.1160-1.3501)at 1.7314. On the other hand, our nearer term upside view will be voided if the 1.6602 level and the 1.6249 level, its Oct 26'09 low are traded leaving additional risk towards its Oct 30'09 high at 1.6124 level and then the 1.6000 level. On the whole, though the pair is now struggling, as long as it holds above the 1.6602 level and then its swing low at 1.6249 level, we see its recovery off the 1.5706 level unharmed.

width=402