HIGHLIGHTS:

GBPUSD: Strength Sees The 1.6622 Level Being Targeted - As strong upside gains continues to be seen pushing GBP higher in early trading today, the pair now runs the risk of further upside targeting its Aug 21’09 high at 1.6622.

EURUSD: Breaking Higher With Attention On The 1.4446 Level - A clear breakout seen in early morning trading today has increased the risk of further strength towards its YTD high at 1.4446.


GBPUSD

GBPUSD

GBPUSD: Strength Sees The 1.6622 Level Being Targeted.

GBPUSD - As strong upside gains continues to be seen pushing GBP higher in early trading today, the pair now runs the risk of further upside targeting its Aug 21’09 high at 1.6622. With its counterpart EUR currently seen taking out its YTD high at 1.4446 and across the board Dollar weakness seen, higher prices remains on the cards for GBP. In such a case, a clean break and hold above the 1.6622 level will target 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 stochastic remains bullish and pointing higher supporting further strength. On the contrary, a pullback in its current upside recovery could see the pair turn lower aiming at the 1.6321 level, its Sept 08’09 low followed by 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. On the whole, with a halt in its declines off the 1.7041 level seen, recovery higher is now expected.


EURUSD

EURUSD

EURUSD: Breaking Higher With Attention On The 1.4446 Level

EURUSD - A clear breakout seen in early morning trading today has increased the risk of further strength towards its YTD high at 1.4446. As highlighted in our special focus, the bigger picture remains higher medium term and attacking the upside with an eventual break of 1.4446 will activate that uptrend towards the 1.4719 level, its Dec 18’08 high.
Invalidating the latter will put the pair in position to head further higher towards the 1.4875 level, representing its Sept 21’09 high. Its daily stochasticsand RSI are bullish and pointing higher suggesting further strength. On the downside, support begins at the 1.4405 level ahead of the 1.4176 level, its Sept 01’09 low followed by its MT rising trendlinecurrently seen at 1.4142. That zone should cap declines and turn the pair back up if seen. However, on a turn below that level, EUR should weaken further towards the 1.3747 level, its Jun 16’09 low. Overall, with a continued hold above its rising channel seen and a breakout occurring, EUR looks to trigger the resumption of its medium term uptrend now on hold.