GBPUSD: Maintains Its Corrective Theme Despite Price Hesitation (Daily Technical Strategist).
The pair closed marginally lower following its failure to follow through higher on its corrective strength on Thursday. However, GBP remains biased to the upside nearer term but will have to return above the 1.5779 level to open the door for further strength towards the 1.5885 level, its Nov 18'2011 high. A breach of there will set the stage for further gains towards the 1.6161 level, its Oct 31'2011 high. Its daily RSI is bullish and pointing higher suggesting further strength. Alternatively, the risk to this analysis will be a return below the 1.5424 level level, its Nov'2011 low and the 1.5270 level, its Oct 2011 low. This will open up further downside risk towards its big psycho level at 1.5000 and possibly lower. On the whole, GBP continues to maintain its recovery tone set from the 1.5424 level.