GBP/USD

GBPUSD

The double base held initially in the session, and drove the market higher to 1.5004. However gains were not maintained and sellers soon won the day taking this lower through 1.4854 for 1.4798. Now currently we are experiencing a correction with 1.4870 the key.

If we can stay trading above here we should find ourselves coming higher for the 1.4980/90 resistance once more. This move currently does look to be correctionary and the pressure is still on Cable for the downside. So sell into strength to these higher levels, this time leaving stops above the 75% short term fib of 1.5040.

Now if we cannot stay trading above 1.4870 downward pressure will prevail and we will see another go on the downside with 1.4800 targeted to 1.4780/70 then targeted. Here cover all short positions. Re-sell a loss of 1.4770 as this would then leave 1.4704 to 1.4684 as your short term objective.


EUR/USD

EURUSD

1.3280 broke last night but we only went to 1.3267 before buyers swooped in and drove this higher. However we haven't recovered much and currently holding the 1.3350 resistance. Short term overbought indicators may well kick in this morning, and drive the market back through to the 1.3280/70 support.

On dips to here shorts are to be covered. Re-sell then a break of 1.3265. A loss through here sees minimum target of 1.3244/40 where would again look to cover. However once we lose 1.3240 we are on our way to 1.3215/00 which may well initially hold. Buyers may attempt to here as long as tight stops are kept. Below 1.3192 sees all longs reversed for 1.3125.. Overall objective on Euros now is 1.3034.

Now all this depends on 1.3350 holding. If we break up above here we are once more looking at the 1.3390/1.3410 resistance. Buyers are advised to cover to here and sellers will also be waiting to keep a lid on the topside.