GBPUSD: With GBP reversing its intra day losses to close marginally higher on Thursday and following through higher in early trading today, risk is building up towards the 1.5850/63 levels, its Sept 15’2011/Oct 14’2011 highs. Its continued hold above the 1.5713/1.5687 zone supports this view. A break of the 1.5850/63 zone will resume its upside strength towards its Sept 08’2011 high at 1.6079 level and followed by the 1.6204 level, its Sept 06’2011 high. On the downside, the pair will have to break and hold below the 1.5713/1.5687 levels to put its short term corrective recovery at risk. This will bring deeper bear threats towards its Oct 12’2011 low at 1.5541. Further down, support comes in at the 1.5270 level and next the 1.5122 level, its July 18’2011 low. On the whole, GBP may have halted its short term corrective recovery and now consolidating but remains biased to the up above the 1.5713/1.5687 levels.
