HIGHLIGHTS:

GBPUSD: Remains On The Corrective Path - Reversal of yesterday gains were seen in early morning trading today suggesting that a trade below the 1.6209 level, its minor support will leave the pair targeting further lower prices towards the 1.6000 level where its psycho level is located ahead of another strong support standing at the 1.5801 level, its Jun 08’09 low.

EURUSD: Building On Recovery Gains- With a successful turn ahead of its key support residing at the 1.3738 level, marking its Mar 19’09 high Tuesday and a subsequent higher close, EUR was seen building on those gains in early trading today.


EURUSD

EURUSD
EURUSD: Building On Recovery Gains.

EURUSD: With a successful turn ahead of its key support residing at the 1.3738 level, marking its Mar 19’09 high Tuesday and a subsequent higher close, EUR was seen building on those gains in early trading today. This development has put immediate attack on the 1.3738 level on hold and opened up further upside risk aiming at the 1.4000 level, its psycho level with a turn above there putting the 1.4338 level, its 2009 high under pressure.
Beyond there will activate the resumption of its medium term uptrend and clear the way for a run at the 1.4718 level, its Dec 18’08 high ahead of the 1.4864 level, its Sept 22’08 high. However, reversing its current gains will imply a turn back down for a retarget of the 1.3738 level. Below the latter if seen will push the pair further lower towards its daily 200 emaat 1.3548 level. We expect the 1.3738 level to reverse roles and provide support if tested. On the whole, though biased to the upside in the medium term, EUR remains vulnerable in the nearer term.


GBPUSD

GBPUSD

GBPUSD: Remains On The Corrective Path

GBPUSD: Reversal of yesterday gains were seen in early morning trading today suggesting that a trade below the 1.6209 level, its minor support will leave the pair targeting further lower prices towards the 1.6000 level where its psycho level is located ahead of another strong support standing at the 1.5801 level, its Jun 08’09 low. We envisage that a cap at these levels should turn the pair back higher again but if a failure of that zone occurs, scope for further price declines will turn towards its daily 200 emacurrently at 1.5578. Its daily studies are supportive of this view as they are heading lower.
Upside targets are situated at the 1.6398 level, its Nov 03’09 high and its 2009 high resting at 1.6662 where a break and hold above the latter will clear the way for the resumption of its medium term uptrend towards the 1.7000 level, its psycho level. All in all, though presently undergoing corrective price activities in the nearer term, GBP remains biased to the upside medium term.