As strong upside gains continues to be seen pushing GBP higher in early trading today, the pair now runs the risk of further upside targeting its Aug 21'09 high at 1.6622. With its counterpart EUR currently seen taking out its YTD high at 1.4446 and across the board Dollar weakness seen, higher prices remains on the cards for GBP. In such a case, a clean break and hold above the 1.6622 level will target the 1.6742 level, its July 30'09 high and then the 1.7000 level. Further than there will clear the way for a run at the 1.7041 level, its Aug 05'09 high. Its daily stochastic remains bullish and pointing higher supporting further strength. On the contrary, a pullback in its current upside recovery could see the pair turn lower aiming at the 1.6321 level, its Sept 08'09 low followed by the 1.6111 level, its Sept 01'09 high with a loss of there pushing the pair further lower towards the 1.5982 level, its July 08'09 low and then the 1.5798 level, its July 08'09 low.On the whole, with a halt in its declines off the 1.7041 level seen, recovery higher is now expected.

Support       Comments

1.6321          Sept 08'09 low

1.6111          Sept 01'09 low

1.6034/00     July 13'09 low/psycho level

Resistance   Comments

1.6622          Aug 16'09 high

1.6742        July 30'09 high

1.7041        Aug 05'09 high

Daily Chart: GBPUSD