GBPUSD: As GBP continues to build on its recovery corrective, the 1.4638 level, its May 14'10 high looks to give way and then trigger further strength. This should set the stage for a run at the 1.4915 level, its May 13'10 low where a violation will pave the way for a move further higher towards its May 10'10 at 1.5052. The latter level is expected to provide a strong resistance and turn the pair lower again. While its May 25'10 low at 1.4257 and its 2010 low at 1.4226 hold as supports, the above view remains valid. Its daily RSI which is bullish and trending higher is supporting this view. However, if those levels (1.4257/26) are taken out, a resumption of its broader weakness will occur with the next downside objective located at its March'2009 low at 1.4112 and then its big psycho level at 1.4000.
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