HIGHLIGHTS:

GBPUSD: Still Under Corrective Downside Pressure -GBP declined shapely lower Wednesday to begin its corrective pullbacks after its recent run to the upside.

EURUSD: Begins Corrective Pullbacks -A clean wipe out of its Tuesday gains was seen on Wednesday suggesting as alluded to in our past analysis corrective pullbacks.


GBPUSD

GBPUSD

GBPUSD: Still Under Corrective Downside Pressure.

GBPUSD: GBP declined shapely lower Wednesday to begin its corrective pullbacks after its recent run to the upside.
This is its first significant decline since turning off the 1.5115 level and now suggest that further build up to the downside could be seen though it was seen recovering higher today. Unless a return back above the 1.6662 level, its recent high occurs, pullbacks to corrective price activities are expected to continue. Holding below the 1.6398 level will call for further declines towards its May 29’09 high at 1.6199 ahead of the 1.6085 level where its May 27’09 is located and then its psycho level at 1.6000 where a cap is expected. On the contrary, resistance lies at the 1.6662/73 level, its /Jun 03’09/Oct 30’08 highs with a turn above there pushing the pair further higher towards the 1.7000 level, its big psycho level. Further out, the 1.7518 level, its Oct 19’08 high will come in as the next upside target. Our overall outlook on the pair remains higher and any pullback at this stage is seen as corrective of its general upside tone.


EURUSD

EURUSD

EURUSD: Begins Corrective Pullbacks

EURUSD: A clean wipe out of its Tuesday gains was seen on Wednesday suggesting as alluded to in our past analysis corrective pullbacks. Our initial target on following through lower stands at the 1.4049 level , its May 22’09 high where we expect the combination of that level and its strong psycho support at the 1.4000 level to provide support and turn the pair higher.However,if this fails to play out, a move lower targeting the 1.3738 level should follow. Its daily RSI has turned lower supporting this view.On the upside, EUR’s initial resistance lies at the 1.4330/61 level, its Dec 29’08/Jun 2’09 highs with break through there paving the way for a move towards the 1.4718 level, its Dec 18’08 high. Above that level will trigger further upside gains towards the 1.4867 level, its Sept 22’08 high. On the whole, EUR retains its medium term bullishness but is now facing corrective downside pressure.