We continue to hold our bullish outlook on GBP as it looks to recover further higher. This development leaves it targeting the 1.6497 level, its Jan 30 2014 high as the next upside.
Further out, resistance resides at the 1.6550 level where a breach will aim at the 1.6600 level, its psycho level. A turn above here will pave the way for a run at the 1.6667 level.
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Its daily RSI is bullish and pointing higher supporting this view. On the other hand, the risk to this analysis will be a return to the 1.6400 level where a breach will open the door for additional weakness towards the 1.6350 level and possibly lower towards the 1.6300 level.
Further down, support comes in at the 1.6259 level. This level is expected to hold if tested thus turning GBP higher. On the whole, GBP continues to face bull threats.
Guest post by FX Tech Strategy
For more, see the GBPUSD forecast.
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