Although GBP backed off higher prices to close lower on Thursday, we continue to maintain our upside outlook. This suggests that GBP should eventually return above the 1.5882/5 level. This will pave the way for further strength towards 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 1.5770/9 level where a reversal of roles as support is likely to occur and turn it back up. However, if this fails to occur, expect GBP to weaken further towards 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. On the whole, GBP continues to retain its nearer term uptrend.
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