HIGHLIGHTS:

GBPUSD: Run For A Recapture Of The 1.4981 Level And Beyond Remains In Progress - Having resumed its upside recovery triggered off the 1.3504 low the past week and continued further upside gains Monday, its key resistance residing at the 1.4981 level, its Jan 16’09 high is now being threatened to be recaptured...

USDJPY: Struggles At The 91.30 Level - As attempts at pushing through the 92.26 level, its Feb 05’09 failed and a subsequent collapse saw the pair closing lower on Monday,USDJPY was seen struggling with the 91.30 level, its Jan 19’09 high in early morning trading today…

GBPUSD: Having resumed its upside recovery triggered off the 1.3504 low the past week and continued further upside gains Monday, its key resistance residing at the 1.4981 level, its Jan 16’09 high is now being threatened to be recaptured. If that materializes, a run at higher prices is expected with the 1.5374 level, its Jan 08’09 high and the 1.5484 level, representing its . 382 Ret (1.8669 to 1.3504 decline) seen as the next two upside objectives. We expect the former or even the latter to turn off the pair and trigger a correction. Its daily momentum indicators remain supportive of this view. On the downside, halting its present upmove would suggest a move back lower towards the 1.4499 level, its daily consolidation top with a clearance of there opening the door for additional losses towards the 1.4352 level, its Dec 31’08 low and then its Jan’2002 low at 1.4045.Below the latter will reverse its current nearer term recovery and bring decline towards the 1.3682 level, its Jun’2001 low and ultimately its YTD low at 1.3504.All in all, with continued upside incursions seen, higher level prices are now threatened.

Support       Comments

1.4578         Feb 04’09 high

1.4352         Dec 31’08 low

1.4045         Jan’2002 low

Resistance    Comments

1.4981           Jan 16’09 high

1.5374           Jan 08’09 high

1.5724           Dec 17’08 high