GBPUSD - With a two-week of upside gains and a hold firmly above its rising MT trendline  keeping focus on the upside, GBP looks to catch up with EUR which has since broken higher and resumed its medium term uptrend the past week. We maintain that while the pair trades above its MT rising trendline bias remains to the upside for the resumption of its MT uptrend now  on hold. Resistance is located at the 1.7041 level with a clearance of there resuming its MT uptrend  and targeting the 1.7200 level, its psycho level ahead of its Oct 20'09 high at 1.7518. Its weekly RSI is bullish and trending higher suggesting further strength. On the downside,  initial support lies at the 1.6370 level with a violation of there leaving the pair aiming further downside towards the 1.5982 level, which marks its July 08'09  and then the 1.6742 level, its July 30'09 high. Overall, we envisage the pair to continue to hold above its MT rising trendline there supporting its MT uptrend resumption scenario.

Directional Bias:

Nearer Term -Bullish

Short Term -Bullish

Medium Term -Bullish

Performance in %:

Past Week:: +1.62%

past Month: -2.55%

Past Quarter: +14.74%

Year To Date:: +13.84%

Weekly Range:

High -1.6742

Low -1.6323

Weekly Chart: GBPUSD:

width=400