HIGHLIGHTS:

GBPUSD: Minor Resistance At The 1.6554 Level Targeted - As GBP continues to hold above its rising trendlinesupport, risk is now turning towards the 1.6554 level, its July 20’09 high.

EURUSD: Maintaining Above The 1.4000 Level - Although hesitation was seen Wednesday following the pair’s failure at 1.4276, EUR held and closed above the 1.4000/1.4200 levels at the end of the day.


GBPUSD

GBPUSD

GBPUSD: Minor Resistance At The 1.6554 Level Targeted.

GBPUSD: As GBP continues to hold above its rising trendlinesupport, risk is now turning towards the 1.6554 level, its July 20’09 high. Invalidating that level will highlight the 1.6742 level, its YTD high where a clearance will put the pair in position to head towards the 1.7000 level, its psycho level. Its daily RSI is positive and trending higher suggesting further strength. On the downside, the 1.6379 level, its July 09’09 high comes in as the initial support ahead of the 1.6075 levels(its rising trendlinesupport) with a decline below there allowing the pair to weaken further towards the 1.5798 level, its Jun 08’09 low and then the 1.5374 level, its Jan 08’09 high. All in all, while the pair still retains its medium term upside bias, a close above the 1.6742 level is needed to resume that trend.


EURUSD

EURUSD

EURUSD: Maintaining Above The 1.4000 Level.

EURUSD: Although hesitation was seen Wednesday following the pair’s failure at 1.4276, EUR held and closed above the 1.4000/1.4200 levels at the end of the day. It was seen strengthening in early trading today suggesting that a retest of the 1.4276 level, its July 21’09 high could be shaping up where a break will open further upside gains towards its YTD high at 1.4339. Beyond the latter will end its correction embarked upon since early Jun’09 and bring additional upside towards the 1.4719 level, its Dec 18’08 high and possibly higher aiming at the 1.4867 level, its Sept 22’08 high. Its daily stochsticsremains supportive of this scenario as it is trending higher. Conversely, its July 01’09 high at 1.4200 will serve as the nearby support ahead of its July 09’09 level at 1.4071 with a loss of there allowing further downside towards the 1.3831 level, its July 08’09 low and then the 1.3747 level, its Jun 16’09 low where a cap is expected. On the whole, with a break and hold above the 1.4200 level seen , threats of further gains are likely.