GBPUSD: Although GBP is now seen backing off higher prices following its Friday gains, it is still biased to the upside. As long as the pair continues to trade and hold above the 1.5645 level, the risk is for it to return to its key resistance at the 1.5924 level, its Feb 08’2012 high. Above here will pave the way for a run at the 1.6074 level, its Nov’2011 high and possibly higher towards its Oct 31’2011 high at 1.6161. Its weekly RSI is bullish and pointing higher supporting this view. On the downside, the risk to this analysis will be a return to the 1.5645/47 levels, its Feb 14/22’2012 lows. This zone is expected to hold when tested. However, 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 retain its broader medium term uptrend though consolidating.
