GBPUSD: As a sharp rally saw the pair wiping out its corrective weakness from the 1.5127 level to close higher at 1.5161 on Thursday, risk of further strength is now set to extend towards the 1.5308 level, its May'10 high. This price action has resumed GBP's nearer term uptrend started from its 2010 low at 1.4226 and paved the way for a run to the upside.

Beyond the 1.5308 level will call for further strength towards its April 30'10 high/falling trendline at 1.5365/89 and then its April 15'10 high at 1.5521. Its daily RSI has turned higher supporting this view. Alternatively, on any pullback from the current price levels, we expect the 1.5127 level to serve as the initial support where a reversal of roles is expected to turn the pair higher again. Below there if seen will activate further weakness towards the 1.4872 level, its July 01'10 low followed by the 1.4685 level, its Jun 22'10 high.

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