GBPUSD: The pair may be recovering higher but still remains vulnerable except it decisively break and hold above the 1.5773/79 levels, its Nov 30’2011/Dec 21’2011 highs. If this is seen, further bull pressure should build up towards the 1.5885 level, its Nov 18’2011 high with a breach aiming at the 1.6161 level, its Oct 31’2011 high and possibly higher. Its daily RSI is bullish and pointing higher supporting this view. On the other hand, the alternative scenario will be a return below the 1.5580 level. This will pave the way for further weakness towards the 1.5494 level , its Dec 20’2011 low with a loss of there targeting the 1.5410 level . Further down, below here will see GBP weaken further towards the 1.5270 level, its Oct 2011 low and even lower towards its big psycho level at 1.5000. On the whole, GBP’s downside vulnerability remains as long as it continues to hold below the 1.5773/79 levels.
