GBP/USD - Weekly technical Strategy

GBPUSD - Having maintained a third week of upside, GBP still looks to head further higher but must break and hold above the 1.6692 level, its Oct 23'09 high and the 1.6740 level, its Sept 11'09 high to signal further higher prices towards its YTD high at 1.7041. Its third consecutive week of strength is coming on the back of a rally off the 1.5706 level in early Oct '09. On a convincing retest and break of the 1.7041 level, risk will shape towards its .50 Ret (2.1160-1.3501 decline) at 1.7314 ahead of the 1.7630 level, its Oct 12'08 high. Its weekly studies are supportive of this view as they are bullish and trending higher. On the other hand, supports are located at the 1.6516 level, its Nov 12'09 high and the 1.6249/60 area, its Oct 26'09/Nov 03'09 lows. These key levels must hold if tested to prevent the pair from declining further and targeting its big support standing at its Oct 30'09 high at 1.6124 level and then the 1.5706 level, its Oct 13'09 low.