GBPUSD: Maintains Corrective Upside Momentum

GBPUSD -The pair continues to build on its recovery activated at the 1.5706 level breaking decisively through the 1.6124 level(Sept 30'09 high) on Thursday to close higher at 1.6338. It was seen hesitating in early trading today and its next target stands at its ST declining trendlineinitiated at the 1.7041 level currently at 1.5452. That level is within the vicinity of its Sept 23'09 high at 1.6463 level and with a combination of these two levels GBP should face a tough time pushing through that zone on initial test. However, if that level gives way, we could see this recovery developing more momentum towards the 1.6740 level, its Sept 11'09 high. Its daily studies are bullish and trending higher suggesting further strength. On the other hand, on any pullback from its current price level, the 1.6124 level just violated should 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 1.6452/63 level may pose a threat to that strength.

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