GBPUSD- As EUR and AUD continue to lead the G10 currency block having resumed their medium term uptrends, GBP looks to follow while targeting its Aug 21'09 high at 1.6622. Successfully breaking and holding above the latter will clear the way for further upside towards the 1.7041 level, its Aug 05'09 high with a loss of there activating the resumption of its medium term uptrend. Its daily stochastic remains bullish and pointing higher supporting further strength. On the contrary, a pullback in its current upside recovery could see the pair turn lower aiming at the 1.6321 level, its Sept 08'09 low followed by the 1.6111 level, its Sept 01'09 high with a loss of there pushing the pair further lower towards the 1.5982 level, its July 08'09 low and then the 1.5798 level, its July 08'09 low. On the whole, with a halt in its declines off the 1.7041 level and a follow through higher seen, recovery higher is now expected.

Support       Comments

1.6321          Sept 08'09 low

1.6111          Sept 01'09 low

1.6034/00     July 13'09 low/psycho level

Resistance   Comments

1.6622          Aug 16'09 high

1.6742        July 30'09 high

1.7041        Aug 05'09 high

Daily Chart: GBPUSD

width=400

/