GBPUSD: Threats Remain To The Upside
GBPUSD -The pair was seen threatening further upside in early trading today reversing its intra day losses off 1.6795 and targeting its immediate resistance residing at the 1.6875 level(Nov 16.09 high). This is coming on the heels of its Monday rally off the 1.6667 level to close higher at 1.6820. GBP remains biased to the upside medium term while holding above its longer term trendline(red) and its major emaswith another support provide by its short term rising trendlinecurrently at 1.6681. A follow through higher above the 1.6875 level is expected to retarget its YTD high standing at 1.7041. On a convincing break of there, risk will shape towards its .50 Ret (2.1160-1.3501 decline) at 1.7314 ahead of the 1.7630 level, its Oct 12'08 high. Its daily stochasticsis bullish and pointing higher suggesting further strength. To the downside, on a back off from its present price levels, threats could be seen towards the 1.6740 level, its Sept 11'09 high with a cut through there pushing it further lower towards ST rising trendlinecurrently at 1.6681 where a cap is expected. Further down, supports are located at the 1.6516 level, its Nov 12'09 high 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 levels and then the 1.5706 level, its Oct 13'09 low.