GBPUSD: While a failed attempt on the upside saw GBP closing lower on Wednesday, its medium term upside risk remains higher. Though hesitating, it should eventually return above the 1.5990/98 levels. 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 convincing break and close below the 1.5772 level, its Mar 22’2012 low. This will clear the way for a run at the 1.5601 level. This zone may hold on retests. 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 hold on to its broader medium term uptrend.
