HIGHLIGHTS:

GBPUSD: Attempting A Retest Of 1.6662 Level - Although a fourth day of strength is being met with an early morning weakness today, GBP remains pressured to upside to resume its medium term uptrend.

EURUSD: Above The 1.3738 Level Leaves MT Outlook Higher - Although intra day gains were reversed to put the pair in a negative territory on Wednesday, as long as EUR continues to hold above its strong support located at the 1.3738 level, marking its Mar 19’09 high, risk remains to the upside in the medium term.


GBPUSD

GBPUSD

GBPUSD: Attempting A Retest Of 1.6662 Level..

GBPUSD: Although a fourth day of strength is being met with an early morning weakness today, GBP remains pressured to upside to resume its medium term uptrend.
This is coming on the back of a recovery higher off the 1.5801 level, its Jun 08’09 low which now leaves its 2009 high resting at 1.6662 being targeted. Beyond there will set the stage for further higher prices towards the 1.7000 level, its psycho level. Daily stochastics is trending higher supporting further upside gains. However, downside objectives are located at the 1.6398 level, its Nov 03’09 high and its May 27 high at 1.6085 with a break and close below there paving the way for further downmovetowards the 1.6000 level, its psycho level. Although we expect the latter level to provide support, a loss of there could accelerate lower prices towards the 1.5810 level, its Jun 08’09 low. All in all, though still biased to the upside in the medium term, a trade above the 1.6662 level is needed to resume that trend.


EURUSD

EURUSD

EURUSD: Preparing To Resume Its MT Uptrend.

EURUSD: Having halted its declines triggered off the 1.4338 level, its 2009 high and embarked on upside gains, EUR now looks to retest that high and possibly break above there resuming its MT uptrend. In such a case, the 1.4718 level, its Dec 18’08 high will targeted as the next objective with a turn above there exposing the 1.4864 level, marking its Sept 22’08 high. Its daily stochastics which has now turned higher remains supportive of this view. Support starts at the 1.3805 level, its Jun’09 low and extends towards its the 1.3738 level, marking its Mar 19’09 high where a cap is expect and subsequently turning the pair higher again. However, if it moves below that level, EUR has a good chance of testing its daily 200 emaat 1.3548 level. On the whole, though currently correcting, EUR still retains it medium term uptrend bias and looks to resume that trend.