GBPUSD: Bullish, Extends Gains.

GBPUSD: With bullish offensive seen above the 1.6000/50 levels, the risk is for GBP to recapture the1.6112 level. Price hesitation may occur here and then turn the pair back lower but if it breaks, expect further upside to shape up towards the 1.6180 level, its May 10’2012 high. Further out, resistance resides at 1.6300 level, its April’2012 high. Its daily RSI is bullish and pointing higher supporting this view. On the other hand, support comes in at the 1.6000/1.5909 levels. A reversal of roles as support is likely to occur here and turn the pair higher. However, if this fails, the 1.5774/78 level will be aimed at. Below here if seen could see the pair return to the 1.5457 level and then the 1.5391 level. On the whole, GBP faces an immediate upside risk into the new week.