GBPUSD: The 1.4768 Level To Provide Support On Pullbacks

GBPUSD: The 1.4768 Level To Provide Support On Pullbacks.

GBPUSD: While the pair may be hesitating after halting its nearer term rally on Thursday, we expect its Jun 02’10 high at 1.4768 to provide support on pullbacks. This should turn the pair back up and push it towards the 1.5000/52 levels. That zone is crucial to the continuation of its recovery as a break will open the door for further gains towards the 1.5308 level, its May’10 high. However, we expect that zone to provide a strong resistance on initial test and turn it lower if tested. The daily studies are bullish and pointing higher suggesting further up move. On the contrary, a decisive clearance of the 1.4569 and the 1.4344 levels must occur for its present strength to halt and open risk towards the 1.4257/26 levels. Below there will reverse its corrective recovery and create scope for the resumption of its broader weakness from the 1.7041 level towards its March’2009 low at 1.4112 and then its big psycho level at 1.4000.All in all, with its nearer term recovery remaining intact, a decisive break above the 1.4935 level will open the door for more strength.