GBPUSD: GBP closed higher on Thursday on the back of its hammer formation and now looks to build on that strength with eyes on its Mar 08'10 high at 1.5195. A decisive close above there will resume its corrective recovery initiated from its 2010 low at 1.4782 towards its Feb 19'10 low at 1.5343 where we expect the bears to come in and push the pair back down again in line with its broader weakness. Conversely, supports are located at the 1.4871 level, its Mar 10'10 low and its 2010 low at 1.4782. Below the latter will put our upside view on hold and then trigger the resumption of its medium term downtrend now on hold towards the 1.4511 level, its April 26'10 low with a loss of there targeting the 1.4396 level, its April 19'10 high.

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