GBPUSD: Backs Off Key Support, Looks To Recover Higher
GBPUSD-The pair halted its declines initiated from the 1.7041 level the past week reversing higher after testing its key support located at the 1.5770 level. With that accomplished, a build up on that recovery is now expected the coming week with resistance standing at the 1.6225 level, its weekly 50 ema. Invalidating that level will open the door for more upside gains targeting the 1.6466 level, Sept 23'09 high and the back of its eroded MT trendline. That zone should reverse roles as support and turn the pair back down allowing for further downside weakness. However, if it is taken out GBP should focus on higher prices towards the 1.6740 level, its Sept 11'09 high. On the downside, reversing its present recovery will mean a return to the 1.5770 level with an eventual loss of there driving the pair further to the downside aiming at the 1.5287 level which marks its .50 Ret(1.3501-1.7041 rally). It psycho level sited at the 1.5000 will be targeted on a break below the latter. On the whole, GBP though backing lower level prices remains vulnerable to the downside nearer term.
Weekly Chart: GBPUSD