GBPUSD: The pair is now seen reversing its Wednesday losses and threatening further upside gain with risk towards its key resistance at the 1.5779 levels, its Sept 12’2011 low. This level is expected to cap gains and turn the pair back down but if a breaks, further strength should build up towards the 1.5947 level, its July 12’2011 low. Its daily RSI is bullish and pointing higher supporting its recovery theme. On the downside, a return below the 1.5326 level, its Sept’2011 low is required to annul its present corrective recovery attempt. Further down, support lies at the 1.5296 level, its Sept’2011 low and then the 1.5122 level, its July 18’2011 low. A breach will expose the 1.5000 level, its psycho level. All in all, GBP remains biased to the upside on corrective recovery but continues to retain its medium downtrend.
