GBPUSD: Downside Pressure Still Dominates

GBPUSD -The pair was seen wiping out its Wednesday losses in early trading today suggesting further downside losses towards the 1.6459 level where its Nov 20'09 high is located. Further downside risk comes in at the 1.6249/60 area, its Oct 26'09/Nov 03'09 lows. These two key levels must hold if tested to prevent the pair from declining further and targeting its big support standing at its Oct 30'09 high at 1.6124 level ahead of the 1.5706 level, its Oct 13'09 low. Its daily RSI is bearish and pointing lower supporting this view. To reduce this vulnerability, GBP must first break back above its invalidated ST rising trendlinefollowed with a break and hold above the 1.6875 level, its Nov 16'09 high. This development if seen should create scope for a move higher towards its YTD high standing at 1.7041 with a breach triggering its medium term resumption and pushing it further towards its .50 Ret (2.1160-1.3501 decline) at 1.7314 ahead of the 1.7630 level, its Oct 12'08 high. On the whole, GBP continues to face downside pressure while holding below its ST trendlineand the 1.6875 level.