The pair may be hesitating following its recent strength but continues to hold on to its broader upside. This development now leaves GBP targeting the 1.6272 level where a breach will pave the way for a move higher towards the 1.6300 level. Further out, resistance stands at the 1.6350 level with a cut through here allowing for more gains towards the 1.6400 level. On the downside, support comes in at 1.6162 level where a violation will trigger further declines towards the 1.6100 level. A break and hold below here will aim at the 1.6050 level. We expect a halt in declines to occur here and turn GBP higher again. On the whole, GBP faces further upside risk medium term.
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