GBPUSD: Strengthens, Bullish Momentum Extends

With the pair continuing to hold on to its bullish tone and trading above its key resistance at the 1.6059 level, there is risk of further strength in the days ahead. This will call for a move further higher towards its Oct 31'2011 high at 1.6161. Its daily RSI is bullish and pointing higher supporting this view. On the downside, below its trendline and the 1.5642/53 levels, its Feb 14/15'2012 lows will have to occur to reverse its present bull the pair should weaken further towards the 1.5497 level, its Jan 10'2012 high. On the upside, the pair will have to break and hold above the 1.6059 level to trigger its medium term uptrend resumption towards its Oct 31'2011 high at 1.6161. On the whole, the pair continues to hold on to its medium term uptrend as it looks to strengthen further.