GBPUSD: With a follow-through higher on the back of its previous week seen at the end of last week, GBP is now set to strength further into the new week. In such a case, the 1.5770 level, its Dec 21’2011 high will be targeted. That level is very significant to GBP’s continued recovery which was activated from the 1.5235 level. A decisive clearance of there will set the stage for further upside price extension towards the 1.5885 level, its Nov 18’2011 high. Above here will aim at the 1.6074 level, its Nov’2011 high. Its weekly RSI is bullish and pointing higher suggesting further strength. On the downside, support comes in at 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 and the 1.5235 level, its Jan 2012 low. On the whole, GBP continues to correct higher suggesting further price extension towards the 1.5770 level and beyond.
