GBP has backed off its Wednesday high at 1.5796 and now trades below the 1.5779 level, its July 12'2011 low. This is coming on the back its Wednesday strong rally. GBP needs to hold above the 1.5713/79 levels to convince the market of further recovery higher. This will force further strength towards the 1.5863 level, representing its Sept 15'2011 high. Its daily RSI is bullish and pointing higher supporting this view. On the downside, the risk to its corrective recovery will be a return below the 1.5270 level, its hammer candle low. This will resume its medium term downtrend towards the 1.5122 level, its July 18'2010 low and possibly lower towards the 1.5000 level, its big psycho level. All in all, GBP is biased to the upside on correction though facing price hesitation.

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