GBPUSD: Risk Higher Above Rising Trendline (Technical Focus)

GBPUSD: Our outlook on GBP continues to point higher as long as it holds above its long term rising trendline dating back to May’2011.Although it weakened and closed lower for the week, we see the risk of returning above the 1.6472/1.6510 levels a possibility. In such a case, the 1.6546 level, its May 31’2011 high will be targeted with a clearance of this level creating additional strength towards the 1.6743 level, its 2011 high and then the 1.6900 level, its psycho level. Alternatively, on a follow through lower on the back of its past week weakness, the 1.6262 level and the 1.6110 level will come in as the next downside targets. However, the major barrier on further decline if seen stands at the 1.5846 level, its trendline bottom and 1.5778 level, its July’2011 low. Further down, support is seen at the 1.5700 level, its psycho level.