GBPUSD: Recovery Target Seen Towards The 1.6124 Level

GBPUSD- Reversal of intra day gains on Wednesday and a follow through higher has seen the pair holding above its 200 ema currently at 1.6055 and increased the risk of a retarget of the 1.6124 level. Invalidating the latter will put the pair in position to head further higher towards the 1.6463 level, its Sept 23'09 high where a cap could be seen. Its daily RSI now trending higher remains supportive of this view. On the downside, the 1.5768 level will be initially targeted with a loss of there turning focus lower to the 1.5500 level, its psycho level and then its .50 Ret( 1.3652-1.7041 rally) at 1.5350. With a temporary bottom now seen, GBP is expected to correct higher in the days ahead though it is dominated its SH downtrend off the 1.7041 level.

Daily Chart: GBPUSD