GBPUSD: The pair has halted its declines started from the 1.6472 level
and is now seen strengthening.This suggests that on continued upside
gains, it will target the 1.6472 level where a decisive break will open
the door for further strength towards the 1.6546 level, its May 31'2011
high. A cut through here will open the door for more upside gains
towards the 1.6743 level, its 2011 high. Its daily RSI has turned
higher supporting this view. On the downside, support comes in at the
1.6222 level traded on Tuesday with a violation of that level eyeing the
1.6193 level where a cap is likely to occur. However, the bigger
challenge will be a break and hold below the 1.5778 level, its July
12'2011 low. In such a case, the 1.5749 level, its Jan 25'2011 low will
be targeted followed by the 1.5700 level, its psycho level. All in all,
GBP still maintains its recovery tone set from 1.5778 level but must
climb above the 1.6472 level to resume that recovery.
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