HIGHLIGHTS:

- GBPUSD: Continued Strength Highlights The 1.4662 Level - GBP extended its recovery initiated at the 1.4113 level, its Mar 30’09 high Wednesday clearing the 1.4305 level, its Mar 06’09 low to close higher at 1.4441.

- USDCAD: Price Exhaustion Shapes Up - The recovery rally off the 1.2192 level ,its Mar 19’09 low lost momentum on Wednesday after bumping into its broken rising channel back and later printing a rejection candle to close at 1.2619.

GBPUSD: GBP extended its recovery initiated at the 1.4113 level, its Mar 30’09 high Wednesday clearing the 1.4305 level, its Mar 06’09 low to close higher at 1.4441.On further upside gains, a retarget of the 1.4662 level, its Feb 23’09 high is envisaged with a breach of there setting the pair up for additional upside gains towards its Jan 16’09/Feb 09’09 highs at 1.4981/86 and possibly higher. Its bullish daily studies supported by its rising ST channel is supportive of further strength. Alternatively, nearby downside target lies at the 1.4305 level on any corrective pullbacks from the current price levels where a snap could see the pair targeting its rising channel bottom at the 1.4272 level. We expect this level to hold and turn the pair back to the upside but if that fails to materialize, lower level prices will be aimed at towards the 1.3845 level, its Mar 18’09 low and subsequently the 1.3655 level, its Mar 11’09 low. On the whole, with upside momentum being maintained, potential for further strength still exists.

GBPUSD chart

USDCAD: The recovery rally off the 1.2192 level ,its Mar 19’09 low lost momentum on Wednesday after bumping into its broken rising channel back and later printing a rejection candle to close at 1.2619.USDCAD must break and hold above the 1.2789 level, its Mar 16’09 high to reduce downside pressure and bring more upside gains towards the 1.2957 level, its Mar 12’09 high ahead of the 1.3064 level, its 2009 high. The daily momentum indicators are positive and trending higher suggesting additional strength. On the downside, its daily ema currently at the 1.2486 level will come in as the initial downside before its Mar 30’09 low at 1.2384 and then the 1.2192 level, its Mar 19’09 high. The next support lies at its Feb 09’09 low at 1.2131 with a breach of that level extending price pressure towards the 1.1771 level, its early Jan’09 low. On the whole, with the pair still seen sustaining its recovery off the 1.2192 level, risk remains to the upside though corrective pullback is now shaping up.

USDCAD chart