GBPUSD: Having ended its three-day correction and triggered a rally during Tuesday trading session, GBP is challenging its key resistance zone at the 1.5882/5 levels. A decisive break and close above here will pave the way for further strength towards its Nov 15’2011 high at 1.5929. Further out, the 1.6074 level, its Nov’2011 high comes in as the next upside target. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support lies at the 1.5770/9 level where a reversal of roles as support is likely to occur and turn it back up. However, if this fails to occur, expect GBP to weaken further towards the 1.5666 level followed by the 1.5497 level, its Jan 10’2012 high. Further down, support stands at the 1.5270 level, its Oct 2011 low. On the whole, GBP continues to retain its nearer term uptrend as it looks to strengthen further.
