GBPUSD: Strengthens, Eyes The 1.5195 Level

GBPUSD: GBP is now on the offensive having seen a follow through higher on its Thursday strength after its declines halted at the 1.4871 level. With that said, our focus has now shifted to its Mar 08’10 high at 1.5195 where a decisive break will resume its corrective recovery initiated from its 2010 low at 1.4782 towards its Feb 19’10 low at 1.5343. We expect the bears to come in and push the pair back down again in line with its broader weakness on initial test. But if that level is cracked, we could see further corrective strength towards its Feb 23’10 high at 1.5574. Its daily RSI is bullish and pointing higher supporting this view. Conversely, supports are located at the 1.5025 level and the 1.4871 level, its Mar 10’10 low with a loss of there targeting its 2010 low at 1.4782. Below the latter will put our upside view on hold and then trigger the resumption of its medium term downtrend now on hold towards the 1.4511 level, its April 26’10 low with a loss of there targeting the 1.4396 level, its April 19’10 high

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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