GBPUSD: Extends Recovery, Eyes The 1.6165 Level.

GBPUSD: Having rejected lower level prices on Wednesday to close higher at 1.6071, GBP was seen following through to the upside today suggesting further upmove towards its Dec 09’09 low at 1.6165. If a break and close above there materializes, further recovery strength should follow towards the 1.6248 level, its Dec 18’09 high ahead of the 1.6409 level, its Dec 16’09 high. We envisage the 1.6248 level should cap recovery if seen. Its daily stochastics is bullish and pointing higher suggesting further strength. On the downside, immediate support lies at the 1.6067 level where its Dec 29’09 high is located ahead of the 1.5830 level, its Dec 30’09 low. Below there will resume its declines started from the 1.6875 level towards the 1.5706 level, its Oct 13’09 low where a breach will see a 100% price retracement (from 1.5706- 1.6875 levels) and open the door for additional downside towards the 1.5500 level, its psycho level and next its .50 Ret (1.3501-1.7041 rally) at 1.5273.