GBPUSD: The pair extended its corrective recovery offensive today, rallying strongly on the back of its Wednesday strength and opening the door for further upside. This development now leaves GBP targeting its .382 Fib Ret (1.6161-1.5235 declines) at 1.5582 where a break will set the stage for further recovery towards the 1.5666 level, its Jan 03’2012 high. Further out, resistance lies at the 1.5691 level, its .50 Fib Ret. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, the threat to our upside view will be a return to the 1.5270 level, its Oct 2011 low and the 1.5235 level, its Jan 2012 low. A break of the latter will aim at its .618 Fib Ret (1.4229-1.6736 rally) at 1.5187. Further down, its big psycho level at 1.5000 comes in as the next downside target. On the whole, GBP continues to correct higher suggesting further price extension towards the 1.5582 level.
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