GBPUSD-With the pair now holding slightly below its longer term trendline, GBP requires a firm hold below there to bring further downside towards its Oct 30’09 high at 1.6124. A decisive break of the latter will turn attention to its strong support located at the 1.5706 level, its Oct 13’09 low where a break will see a 100% price retracement (from 1.5706-1.6875 levels) and open the door for further downside towards its .50 Ret (1.3501-1.7041 rally) at 1.5273. To the topside, 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 view 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.

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