Sixteen has been disorganized all day (even appearing to degenerate to an open wave at some point) though now it appears that the center of TD16 has reformed farther north and underneath intermittant bursts of deep convection. Based on radar data from KMLB, I estimate the center to be located about 90 miles east of Melbourne.
The steering currents influencing the depression are quite weak, so the slow forward movement should continue for another day or so before moving slowly to the W or NW. This should give the system ample time to organize itself over the warm waters of the gulf stream.
There has been a significant decrease in wind shear over the past 24 hours and upper level winds are now very favorable for further development. Waters are warm (~30C), there is good upper level divergence, and the only real inhibiting factor that I can find is the slow forward speed and the associated upwelling, which will become a concern sooner rather than later. That being said, the depression has actually decreased in organization today, so we'll have to wait and see what this system will do.
As far as intensity guidance is concerned, the models are all over the place with SHIPS bringing (Ophelia) to 66kts in about 3 days, whereas the GFDL shows little in the way of intensification. If the depression can get its act together in the short term conditions are favorable for strengthening, but until consistent organization begins, heavy rains are the main threat.