Daily Technical Strategies 30/09/2009 GBP

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GBPUSD: Higher Recovery Eyes The 1.6132 Level
GBPUSD-Having recovered off the 1.5768 level, its Sept 28'09 high and followed through higher on Tuesday to close higher at 1.5968, further price extension was seen in early trading today driving GBP through its nearby resistance at the 1.6063 level, its daily 200 ema. With the current strength, the pair could be eyeing a retest of its Sept 21'09 high at 1.6132 where an invalidation will put it in position to even accelerate higher aiming at the 1.6463 level, its Sept 23'09 high where a cap could be seen. Its daily momentum indicators are bullish and pointing higher suggesting further strength. On the other hand, pullbacks should initially aim at its Tuesday high at 1.5988 with a break and close below there putting pressure on the 1.5768. Below there with will put the pair on the path to further declines towards the 1.5500 level, its psycho level and then its .50 Ret( 1.3652-1.7041 rally) at 1.5350. On the whole, GBP continues to build on its recovery strength following its recent run to the downside off the 1.7041 level.

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