With the pair building up on further corrective gains the past week, further strength is expected in the new week. In such a case, further bull pressure is set to target its Sept 08'2011 high at 1.6079 level. A turn above here will call for a run at the 1.6111 level, the back of its broken long term trendline and possibly higher towards the 1.6204 level, its Sept 06'2011. Its weekly RSI is bullish and pointing higher suggesting further strength. On the downside, GBP will target the 1.5850 level, its Oct 14'2011 high followed by its Oct 18'2011 low and then the 1.5526 level. However, the pair will have to break and hold below its key support at the 1.5270 level to annul its present upside recovery and bring the resumption of its medium term weakness towards the 1.5122 level, its July 18'2011 low. On the whole, GBP continues to face further upside risk on correction.

Weekly