HIGHLIGHTS:

EURGBP: The 0.8638 Level Still Under Pressure - The cross ended lower Wednesday selling off hard and opening up risk towards its strong support at the 0.8638 level, its Feb 10’09 low...

GBPUSD:Shooting Star Formation Portends Lower Prices Nearer Term - The inability of the pair to sustain its intra gains on saw it reversing most of those gains to close marginally higher forming a shooting star candle on Wednesday...

EURGBP

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EURGBP: The 0.8638 Level Still Under Pressure

EURGBP: The cross ended lower Wednesday selling off hard and opening up risk towards its strong support at the 0.8638 level, its Feb 10’09 low. If a break of there occurs, EURGBP will head further lower targeting the 0.8577 level, its Dec 08’08 low and then the 0.8235 level. On the upside, the 0.8762 level, its May 07’09 low followed with its May 21’09 high at 0.8869 will come in as the next resistance levels ahead of the April 24’09 high at 0.9081.Overall, having reversed its recent upside gains, risk has turned to the downside with a possible trade towards the 0.8638 level and beyond expected.

GBPUSD

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GBPUSD:Shooting Star Formation Portends Lower Prices Nearer Term

GBPUSD:The inability of the pair to sustain its intra gains on saw it reversing most of those gains to close marginally higher forming a shooting star candle on Wednesday. It was seen trading lower in early morning trading today. We now envisage corrective pullbacks to shape up. In such case, supports are located at the 1.5724 level, its eroded resistance which should now provide support. If a trade below there occurs, we could see the pair declining further towards the 1.5450 level which is the location of its daily 200 emafollowed by the 1.5373 level, its Jan 08’09 high. Conversely, resistance is initially sited at the 1.6000 level, its psycho level followed by the 1.6085 level where its May 27’09 is located. Above there if seen should trigger gains towards the 1.6398 level, its Nov 03’09 high and possibly higher. All in all, with a shooting candle now printed, risk of further downside weakness is likely to be seen.