GBPUSD: With GBP bouncing off its Thursday intraday low at 1.5874 to take back part of its recent corrective weakness, risk of a return to the 1.6161 level, its Oct 2011 high is now building up slowly. On an eventual clearance of there, focus will turn to the 1.6204 level, its Sept 06’2011 and subsequently its Aug 30’2011 high at 1.6418. Its daily RSI has turned higher supporting this view. Alternatively, a return below the 1.5874 level, its Nov 03’2011 low is required to annul its present bullish build up and open the door for further weakness towards the 1.5752 level, its Oct 21’2011. Further down, support lies at the 1.5632 level, its Oct 18’2011 low and then its Oct 12’2011 low at 1.5541. On the whole, the pair continues to maintain its short term uptrend tone but must decisively break and close above the 1.6161 level to resume that trend.
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