GBPUSD: A third day of bullish build up saw GBP closing higher on Tuesday suggesting further gains could target 1.5720 level, its July 02’2012 high. A breach will expose the 1.5774/78 levels. Beware of this zone as it harbors its Jun 20’2012 high and its daily 200 emas, two key resistance levels. However, above here will open the door for a push further higher towards the 1.5857 level where a violation will expose the 1.6000 level. Price hesitation could occur here and then turn the pair back down. On the downside, it will take a return below the 1.5391 level to annul GBP’s present rally. This if seen will create scope for more declines towards its Jun 2012 low at the 1.5266 level. Below here will call for a move further lower towards its July 18’2010 low located at the 1.5122 level. On the whole, GBP now faces bullish offensive.
