Having broken and held above the 1.6056 level, its Jan 18'2011 high followed with a further strength in early trading today, GBP faces the risk of recapturing its falling channel presently at 1.6223. It is currently testing that level. Note, we have been calling for the resumption of its rally started from the 1.5344 level. A clean violation of the 1.6223 level will call for more upside gains towards its Nov'2010 high at 1.6298. Beyond there will set the stage for a push higher towards the 1.6455 level. Its daily RSI is supportive of this view as it is bullish and pointing higher. Alternatively, support lies at the 1.6056 level on any pullback where a reversal of roles as support is expected. Further down, the 1.5819 level, its Jan 19'2011 low comes in as the next support followed by the 1.5749 level and then the 1.5660 level, its Dec'2010 low. A cap is likely to occur there and turn the pair back up again.