HIGHLIGHTS:

GBPUSD: Loss Of The 1.4137 To Highlights Risk Towards 1.3504 Level- With an invalidation of the 1.4137 level, its Feb 12’09 low seen Monday, risk for further declines through its Jan’2002 low at 1.4045 and the 1.3682 level, its Jun’2001 low has increased...

USDCAD: Bullish And Strengthening - The pair has not only retained its bullish price action off the 87.13 level, its 2008/2009 swing lows but continues to strengthen breaking and holding above another key resistance at the 97.43 level, its Nov 24’08 high on Thursday…

GBPUSD: With an invalidation of the 1.4137 level, its Feb 12’09 low seen Monday, risk for further declines through its Jan’2002 low at 1.4045 and the 1.3682 level, its Jun’2001 low has increased. Decisively penetrating and holding below the latter will set the stage for a run at its 2009 swing low at 1.3504 with a clearance of there resuming the pair’s longer term downtrend and turning focus to the 1.2835 level, its Sept’85 low and possibly lower. This view is clearly supported by its stochastics which is now heading to the downside. To the topside, reversal of the present losses will have to occur and a return back above the 1.4137 level seen to open up further upside towards the 1.4352 level, its Dec 31’08 low ahead of the 1.4662 level followed by its Jan 16’09/Feb 09’09 highs at 1.4981/86.Beyond there if seen will resume its recovery higher off the 1.3504 towards the 1.5374 level, marking its Jan 08’09 high. All in all, with the present development ,odds of further declines have more weight than upside gains.

USDCAD: Although the triangle break out price target is still far off, break and close above the 1.2765 level, its Jan 21’09 high now highlights the bigger resistance at the 1.2954/1.3018 zone, its Oct & Dec’08 highs. As long as the present upside momentum triggered after its symmetrical triangle break out continues to be sustained, above the 1.2954/1.3018 zone is likely to seen with further upmove expected towards the 1.3463 level, its 618 Ret(1.6186- 0.9058 decline) and then its pattern breakout price objective at 1.3960.Both the daily and weekly studies are pointing higher supporting the present upside incursions. On the downside, the 1.2765 level, its Jan 21’09 high and the 1.2673 level are seen as supports ahead of the 1.2371/94 area, its Dec 19 & 31’08 high with a decline through there paving the way for a move towards its Jan 28’09 low at 1.2026.On the whole, with its break out gains continuing to be sustained,USDCAD looks to head further higher.