GBPUSD: Challenges Channel Resistance
GBPUSD - GBP was seen attacking its strong resistance at 1.6431 where its channel resistance is located in early trading today. While that level is now vulnerable, a convincing break of there must be seen to put another key resistance standing at its Sept 23'09 high at 1.6463 under pressure. We envisage a price stall at this zone but if that fails to occur recovery higher targeting even the 1.6740 level, its Sept 11'09 high may be seen. However, backing off the mentioned level will mean declines towards the 1.6239 level and then the 1.6124 level which is expected to reverse roles and provide support. Further down, its Oct 14'09 high at 1.6024 will come in as the next support ahead of the 1.5837 level, its Oct 13'09 high and the 1.5706 level, its Oct 13'09 low. On the whole, with corrective strength continuing to be seen, further upside threats are expected but the 1.6431/63 level may pose a threat to that strength.