GBPUSD: Still Targeting The 1.6744 and 1.6875 levels

GBPUSD - GBP finished higher on Wednesday building on its recovery activated at the 1.6267 level, its Nov 25'09 high and turning attention to the 1.6744 level, its Nov 25'09 high and the 1.6875 level, its Nov 16'0-09 high. Violating these key levels will convince the market that its decline has ended bringing the next upside gains towards its YTD high at 1.7041. Having said that, its current recovery still remains consistent with its overall medium term uptrend and beyond the 1.7041 level will target further upside gains towards its .50 Ret (2.1160-1.3501 decline) at 1.7314. The risk to our analysis will be a convincing violation of the 1.6267 level, its Nov 27'09 low and its Oct 26'09 low at 1.6249 thereby setting the stage for declines towards its Oct 30'09 high at 1.6124 level ahead of a major swing low at the 1.5706 level, its Oct 13'09 low. This level preserves GBP's medium term uptrend outside its LT rising trendlinedrawn from the 1.3655 level in Mar'09.