GBPUSD: Weakening And Testing The 1.6681 Level

GBPUSD -The pair continues to hesitate following through lower on its Tuesday losses on Wednesday and risking further downside towards its short term rising trendlinecurrently at the 1.6709 level which was being tested at the time of this analysis. We envisage this level should provide support but if it fails, price acceleration could be seen further towards the 1.6516 level, its Nov 12'09 high and then the 1.6249/60 area, its Oct 26'09/Nov 03'09 lows. These two 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. Below there will expose the 1.5706 level, its Oct 13'09 low. Its daily RSI is bearish supporting this view. However, on a reversal of its current setback, GBP should initially target the 1.6875 level, its Nov 16'09 high with a clean invalidation of there pushing the pair further higher towards its YTD high at 1.7041. On a convincing loss of that level, risk will turn to its .50 Ret (2.1160-1.3501 decline) at 1.7314 ahead of the 1.7630 level, its Oct 12'08 high.

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