HIGHLIGHTS:

GBPUSD: Failure At The 1.4986 Level Sees GBP Collapsing Lower- The pair’s nearer term upside resumption stalled on Tuesday after it collapsed through the 1.4578 level, its Feb 04’09 high to close lower at 1.4557...

EURUSD: Hold Above Declining Channel Top Yet Solidify- Although the pair continues to trade above its broken falling channel top, loss of momentum at 1.3093 level on Monday and price hesitation on Tuesday remain suggestive of a turn back lower into the said channel…

GBPUSD: Failure At The 1.4986 Level Sees GBP Collapsing Lower

GBPUSD: The pair’s nearer term upside resumption stalled on Tuesday after it collapsed through the 1.4578 level, its Feb 04’09 high to close lower at 1.4557.It was seen weakening further in early trading today suggesting an attack on the 1.4352 level, its Dec 31’08 low could be seen with a loss of that level triggering additional losses towards its Jan’2002 low at 1.4045.A decisive break and hold below the latter will reverse the mentioned nearer term upmove and open up downside risk towards the 1.3682 level, its Jun’2001 low and ultimately its YTD low at 1.3504.Its daily studies are pointing lower suggesting further weakness. To the topside, the 1.4981 level, its Jan 16’09 high must be recaptured to annul our downside view and bring further gains higher towards the 1.5374 level, its Jan 08’09 high and then the 1.5484 level, representing its .382 Ret (1.8669 to 1.3504 decline).On the whole, with its overall(medium and longer term )bearishness remaining in place, a retarget of the 1.3504 level is envisaged.

Support     Comments

1.4352       Dec 31’08 low

1.4045       Jan’2002 low

1.3682       Jun’2001 low

Resistance   Comments

1.4578           Feb 04’09 high

1.4981           Jan 16’09 high

1.5374           Jan 08’09 high