We continue to retain our upside bias on GBP while it trades and holds above its trendline support (at 1.5803). As long as this continues to hold, GBP is likely to return to its key resistance at 1.6059 level. A break will resume its medium term uptrend and then target the 1.6091 level, its Nov 11'2011 high. A breach of here will turn focus to its Oct 31'2011 high at 1.6161. The alternative scenario will be a break and hold below the mentioned trendline. This will turn focus to the 1.5772 level, its Mar 22'2012 low where a breach will aim at the 1.5601 level. This zone may hold on retests but if violated, further lower prices will shape up towards the 1.5497 level, its Jan 10'2012 high. On the whole, the pair continues to hold on to its broader medium term uptrend but faces price hesitation.

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