HIGHLIGHTS:

GBPUSD:Still Targeting Higher Prices - A third-day of upside gains has seen the pair taking back its last week losses to close higher at 1.4983 on Wednesday.

EURGBP: Susceptible And Targeting The 0.8722/18 Region - Further sell off was seen on Wednesday following through to the downside on its Tuesday losses to close lower at 0.8818.

GBPUSD: A third-day of upside gains has seen the pair taking back its last week losses to close higher at 1.4983 on Wednesday. With that achieved, its April 06’09/Feb 09’09 highs at 1.4986/65 and its psycho level at 1.5000 level are now being targeted where a clean penetration and negation will bring the resumption of its upmove initiated off the 1.3504 level towards the 1.5374 level, its Jan 08’09 high and possibly higher. This view is supported by its rising channel as well as its bullish momentum indicators. Downside targets are situated at the 1.4662 level, its Feb 23’09 high and the 1.4558 level, its rising channel base. On further weakness, lower level prices should build up towards the 1.4305 level, its Mar 06’09 followed by the 1.4110 level, its Mar 30’09 low and subsequently the 1.3845 level, its Mar 18’09 low. All in all, though GBP retains its longer term bearishness, it remains biased to the upside in the short term while confined within its channel.

EURGBP: Further sell off was seen on Wednesday following through to the downside on its Tuesday losses to close lower at 0.8818. This negative price action now leaves the 0.8722/18 area, its Feb 24’09 low/daily 200 emavulnerable of being violated and if that occurs, lower prices could develop towards the 0.8638 level, its Feb 10’09 low. The daily studies are bearish and trending lower supporting this scenario. On the upside, its Mar 05’09 low at 0.8852 will be targeted as the immediate resistance ahead of the 0.8911 level, its Mar 02’09 low with a clearance of the latter opening the door for higher prices towards the 0.8951 level, its Mar 09’09 low and then its psycho level at 0.9000.Further out, resistance is located at the 0.9073 level, its Jan 26’09 high. Onthe whole. EURGBP remains biased to the downside with any recovery higher at this stage seen as corrective of its declines off the 0.9499 level.