GBPUSD: Halts Downside Pressure, Strengthens

GBPUSD - GBP held off lower prices on Thursday after testing a low of 1.6514 before closing marginally higher at the end of the session. Though immediate downside pressure has not been averted yet , its current recovery higher in early trading today may have temporarily halted its declines off the 1.6842 level keeping the pair above its ST rising trendlinenow seen at 1.6540 and the 1.6249/60 area, its Oct 26'09/Nov 03'09 lows. These key levels must hold if tested to prevent the pair from declining further and targeting its big support standing at its Oct 30'09 high at 1.6124 level and then the 1.5706 level. Its daily studies are both bearish and pointing lower supporting this view. To the topside, the pair must break back above the 1.6740 and the 1.6842 levels to reverse its downside threats and bring gains towards 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 whole, GBP remains pressured to the downside having collapsed off the 1.6842 level.