Loss of upside momentum and a close back below the 1.5906 level saw GBP closing lower the past week and suggesting a further downside risk. However, as long as the pair holds above the 1.5660 level, we look for it to return above the 1.6056 level. This will open the door for more recovery strength towards its Nov 12'10 high at 1.6183. A cut through that level will clear the way for a further push higher towards its Nov'2010 high at 1.6298. On the other hand, a clean penetration of the 1.5660 level will pave the way for a run at the 1.5344 level followed by the 1.5100 level and subsequently the 1.5000 level. All in all, GBP is now hesitating but still holds on to most of its recovery gains from the 1.5344 level.

/