A follow-through higher has seen the pair breaking above the 1.5906 level to build up on its recovery started from the 1.5344 level, its Dec'2010 low in early trading today. However, we will like to see GBP hold firmly above the 1.5906 level on a daily closing basis to convince the market of a valid breakout. This will trigger further upside momentum towards its Nov 12'10 high at 1.6183 with a cut through there clearing the way for a further push towards its Nov'2010 high at 1.6298. Its daily studies are bullish and pointing higher supporting this view. On the other hand, on any pullback, support stands at the 1.5718 level, marking its Jan 13'2011 low with a breach allowing for more weakness towards the 1.5660 level, its Dec'2010 low. A reversal of roles is expected there. All in all, GBP continues to press higher, building on its bullish recovery off the 1.5344 level.
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