With a firm hold above the 1.5660 level and a follow through higher on its Wednesday gains occurring on Thursday, our minimum target standing at the 1.5906 level, its Dec 14'10 high is now being aimed at. There are two risks we are watching presently at its current price levels though GBP still retains its recovery bullishness. Note that we may not see a fast sail through the 1.5906 level suggesting a back off that level on an initial test because of its significance. Secondly, the pair is now in overbought zone, which suggests that a pullback could be seen. However, if the 1. 5906level is taken, we should face further strength towards the 1.6091 level, its Nov 19'2010 high with a loss of there turning attention to the 1.6296 level, its Nov 04'2010 high. Its daily stochastics is pointing higher though in an overbought zone. To annul our upside view, the pair will have to break and hold below the 1.5344 level. This will resume its short term weakness and turn focus to its Sept 2010 low at 1.5296 and subsequently its psycho level at 1.5000. All in all, having bottomed out at the 1.5344 level and triggered a strong recovery, risk continues to point higher.

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