GBPUSD: Reverses Gains, Builds Bullish Momentum.
GBPUSD: Having reversed its Monday losses in early trading today on a strong rally, the 1.5770 level, its Dec 21’2011 high looks to be taken out. That level is very significant to GBP’s continued recovery which was initiated from the 1.5235 level. An eventual 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 daily RSI is bullish and pointing higher suggesting further strength. On the downside, support lies 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.
