GBPUSD- With a sell off reversing its Monday and Wednesday upside strength on Thursday, risk of further downside continues to be seen. In such case, its Dec 09'09 high at 1.6165 comes in as the immediate support which the pair must cleanly violate to further its weakness towards the 1.5706 level, its Oct 13'09 low where a breach will see a 100% price retracement (from 1.5706- 1.6875 levels) and open the door for additional downside towards its .50 Ret (1.3501-1.7041 rally) at 1.5273. Its daily RSI is bearish and pointing lower suggesting further downside. Conversely, above its Nov 25'09 high at 1.6744 and the 1.6875 level, its Nov 16'0-09 high must be traded to reverse its current nearer term downside threats and bring further gains towards its YTD high at 1.7041 level where a decisive invalidation will resume its medium term uptrend towards its .50 Ret (2.1160-1.3501 decline) at 1.7314.
Daily Chart: GBPUSD