GBPUSD: With a reversal of its two- day losses seen the past week, GBP is entering the new week bullish and targeting further upside. This suggests that on continued strength the pair should target 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 1.5642/53 levels, its Feb 14/15’2012 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, though still maintaining its nearer term uptrend, GBP will have to break above the 1.5924 level to trigger that trend.
