GBPUSD: The pair is now seen reversing part of its two-day weakness, suggesting a return above the 1.5850/63 levels, its Sept 15’2011/Oct 14’2011 highs is building up. If this zone is taken out, GBP will resume its upside strength and target its Sept 08’2011 high at 1.6079 level and subsequently the 1.6204 level, its Sept 06’2011 high. On the downside, the pair will have to break and hold below the 1.5713/1.5687 levels to put its short term corrective recovery high at risk. This will bring threat towards its Oct 12’2011 low at 1.5541. Further down, support comes in at the 1.5270 level and next the 1.5122 level, its July 18’2011 low. On the whole, GBP may have halted its short term corrective recovery but while it holds above the 1.5713/1.5687 levels, that trend remains intact.
