GBPUSD: Violates The 1.6421/66 Levels, Eyes Further Upside.

GBPUSD - After an attack on the 1.6421 level, its channel resistance failed on Tuesday putting GBP on a negative close, it was seen breaking 1.6421/66 levels in early trading today. While holding on to those gains, GBP has potential to target further higher prices towards the 1.6740 level, its Sept 11'09 high where a break will set the stage for a run at the its YTD high at 1.7041. Two things are key to the sustenance of the pair's current upside offensive and an eventual resumption of its MT uptrend. First, we want to see a hold above its channel breakout point at 1.6421 level and the 1.6740 level, its Sept 11'09 high and second, a break and hold above the 1.6740 level. These two scenarios will build more confidence in its current strength and open up risk towards the 1.7041 level. The immediate support now lies at the 1.6466 level followed by the 1.6412 level. These key areas are expected to reverse roles and provide support there pushing the pair higher again. However, a loss of there will invalidate its breakout and create scope for further weakness towards the 1.6124level, its Sept 30'09 high and then its Oct 14'09 high at 1.6024 ahead of the 1.5837 level, its Oct 13'09 high. On the whole, having maintained its nearer term recovery and broken higher through the 1.6421/66 zone, risk remains to the upside.