GBPUSD: Recovery Clears The 1.6124 Level

GBPUSD- Momentum build up on the back of its two days of recovery saw GBP breaking through its key resistance standing at the 1.6124 level today (Sept 30'09 high). Maintaining those gains on a daily closing basis today should bring further strength towards its declining channel initiated from the 1.7041 level currently at 1.6460. We envisage this level (channel resistance)may provide strong resistance and turn the pair back down. If however that level gives in, higher prices could develop towards the 1.6463 level, its Sept 23'09 high. Its stochastics and RSI are bullish and pointing higher supporting this view. Conversely, on any pullback from its current price level, the 1.6124 level just eroded should provide support . Further down, its Oct 14'09 high at 1.6024 will come in as the next support ahead of the 1.5837 level, its Oct 13'09 high and the 1.5706 level, its Oct 13'09 low. On the whole, with corrective strength continuing to be seen, further upside threats are expected.