HIGHLIGHTS:

GBPUSD: Recovering Higher Off Recent Low - Having backed off lower level prices at 1.6112 to close higher on Tuesday, GBP was seen following through higher in early trading today.

EURUSD: Reverses Declines, Keeps Eyes On The Upside - As declines halted at 1.4272 and a higher close was seen on Tuesday, early morning strength today now looks to push the pair further higher towards the 1.4376 level where its Sept 01’09 high is located.


GBPUSD

GBPUSD

GBPUSD: Still Looking To Recover Higher

GBPUSD- GBP closed marginally higher Thursday following through higher on its Wednesday gains to close at 1.6332 at the end of the day. This is coming on the back of a failure at the 1.6411 level and now requires a close back above that level to trigger the continuation of its current strength. Beyond there(1.6411) will clear the way for further upside towards the 1.6622 level, its Aug 16’09 high with a loss of the latter targeting the 1.6742 level, its July 30’09 high and then the 1.7000 level. Further than there will clear the way for a run at the 1.7041 level, its Aug 05’09 high. Its daily RSI remains bullish and pointing higher supporting further strength. Conversely, a fade in its current upside recovery should see the pair turn lower aiming at the 1.6111 level, its Sept 01’09 high with a loss of there pushing the pair further lower towards the 1.5982 level, its July 08’09 low and then the 1.5798 level, its July 08’09 low.Onthe whole, with a halt in its declines off the 1.7041 level, recovery higher should is now envisaged.


EURUSD

EURUSD

EURUSD: Biased To The Upside While Holding Above MT Rising Trendline

EURUSD: Although the pair’s intra day gains faded collapsing to a low of 1.4235 before closing at 1.4254 on Thursday, as long it continues to trade and hold above its MT rising trendline, bias remains to the upside medium term. Having said that, EUR now requires a clearance of the 1.4345 level to maintain further upside pressure towards the 1.4405 level, its Aug 27’09 high. Further out, resistance is situated at the 1.4719 level, its Dec 18’08 high and then the 1.4875 level, its Sept 21’09 high. On the downside, support begins at the 1.4176 level, its Sept 01’09 low followed by its MT rising trendlinecurrently seen at 1.4054. On a turn below that level, EUR should weaken further towards the 1.3747 level, its Jun 16’09 low. Its daily stochastic is bearish and trending lower suggesting further downside weakness. On the whole, with a continued hold above its rising channel, EUR looks to trigger the resumption of medium term uptrend now on hold.