GBPUSD - Bounce from 1.6100 targets Friday's levels

Yesterday saw lower highs in GBPUSD but without significantly extending Friday’s decline. A late rally, despite being limited, has been extended in Asia and is enough to turn momentum more positive. Signals are not strong but do indicate scope for initially higher levels although an early move through yesterday's top is looked for as confirmation. In view of this our call is Bullish above 1.6106. The immediate target is 1.6182, yesterday's high, with a move above that level targeting 1.6202, half of last Friday’s decline, or even 1.6236, Friday’s open.

The risk to this call is a move below 1.6106, yesterday's low, indicating that buying pressure is weaker than previously assessed targeting 1.6074 then 1.6025, the open from three weeks ago.