GBPUSD: The pair is now seen challenging its May 28'10 high at 1.4610 after following trough higher on the back of its Monday gains today. As long as it holds above the 1.4226/57 levels, its May 25'10/2010 lows, we see further upside risk beyond the 1.4610 level and towards the 1.4638 level, its May 14'10 high. A clean breach of that level will set the stage for a run at the 1.4915 level, its May 13'10 low and next its May 10'10 at 1.5052. The latter level is expected to provide a strong resistance and turn the pair lower again. However, if the 1.4257/26 zone is 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. All in all, having continued to hold above the 1.4226/57 level, risk of a recovery higher through continues to build up towards the 1.4610/38 levels.
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