GBPUSD- Struggling At The Channel Top.

GBPUSD- GBP continues to struggle slightly above its declining channel following its marginal lower close on Thursday. To alleviate its current threat to the downside, the pair must climb back above the 1.6692 level, its Oct 23'09 high to signal further upside towards the 1.6740 level, its Sept 11'09 high  where a break higher will pave the way for a run at its YTD high at 1.7041. We retain our short term downtrend outlook on the pair while trading below the 1.6692 level. In such a case, immediate support lies at the 1.6358 level followed by the 1.6239 level where its Oct 19'09 low is located ahead of its Sept 30'09 high at 1.6124 with a break creating scope for further weakness towards the 1.5708 level printed on Oct 13'09. Below the latter will set off the resumption of its short term downtrend. On the whole, GBP must break and hold above the 1.6692  level to reverse its current downside threats.

Daily Chart: GBPUSD