GBPUSD: With GBP finally breaking and holding above its key resistance zone at the 1.5990/98 levels, ways are now open for further upside gains in the days ahead. In such a case, further strength will develop towards the 1.6074 level, its Nov’2011 high with a breach of here turning focus to its Oct 31’2011 high at 1.6161. On the downside, the risk to this analysis will be a return to the 1.5990/24 levels where a reversal of roles as support is likely to occur. However, a break of here if seen will turn attention to the 1.5772 level, its Mar 22’2012 low followed by the 1.5601 level. This zone may hold on retests but if violated, further lower prices will shape up towards the 1.5497 level, its Jan 10’2012 high. On the whole, the pair continues to hold on to its broader medium term uptrend.
