GBPUSD: Recovery Higher Shifts Focus To The 1.6468 Level

GBPUSD - The pair recovered strongly higher from its short term low at 1.5708 the past week breaking through its Sept 30'09 high at 1.6124 and its daily major emas to close higher at 1.6356 on Friday. This is the pair's strongest weekly close since Jun'09. With its declines started at the 1.7041 level (YTD high) halted, GBP now looks to head further higher targeting a confluence of resistance levels (its Sept 23'09 high/SH falling trendline))located at the 1.6468/66. That zone is significant and may turn off the pair on testing it as signs of price hesitation were seen ahead of that zone on Friday . However, if a violation of there occurs, scope for further upside gains towards the 1.6740 level, its Sept 11'09 high could be seen with an eventual loss of there setting the stage for a retarget of its YTD high at 1.7041. A break and hold above that level will be required to resume its medium term uptrend currently on hold. Its weekly RSI remains supportive of this view as it is bullish and pointing higher. On the other hand, on any pullback from its current price level, the 1.6124 level should reverse roles and provide support . Further down, its psycho level at 1.6000 comes in as next support ahead of its Oct 13'09 low at 1.5708 and then the 1.5500 level, its psycho level. On the whole, having rallied strongly the past week, risk remains to the upside but GBP must break and hold above key resistance zone at 1.6468/66 to clear the way for further recovery.