GBPUSD - daily trading strategy

GBPUSD-With an intra day recovery seeing GBP closing marginally lower on Monday after testing a low of 1.6311, price action saw the pair trading below its short term rising trendlinein early trading today. A convincing break and hold below there will turn focus to the 1.6267 level, its Nov 27'09 low and its longer term rising trendlinecurrently at 1.6226. The pair must hold above these levels to preserve its recovery initiated from the 1.5706 level, its Oct 13'09 low or a break will accelerate a return to that level with the only level to overcome residing at its Oct 30'09 high at 1.6124.If the 1.5706 level is eventually traded, further declines could shape up towards its .50 Ret (1.3501-1.7041 rally) at 1.5273. Its daily RSI is bearish and pointing lower suggesting further downside. On the upside, GBP must break and hold above its Nov 25'09 high at 1.6744 and the 1.6875 level, its Nov 16'0-09 high to reverse its current downside threats and turn focus to the 1.7041 level, its YTD high where a break will resume its medium term uptrend towards its .50 Ret (2.1160-1.3501 decline) at 1.7314.