HIGHLIGHTS:

GBPUSD: Still targeting The 1.6622 Level & Beyond - As EURUSD and AUDUSD continue to lead the G10 currency block having resumed their medium term uptrends, GBP looks to follow while targeting its Aug 21’09 high at 1.6622. .

EURUSD:Calm After The Storm - Having rallied strongly on Tuesday breaking above its key resistance at the 1.4446 level to resume its medium term uptrend, EUR was seen digesting those gains in early trading today.


GBPUSD

GBPUSD

GBPUSD: Still targeting The 1.6622 Level & Beyond.

GBPUSD - As EURUSD and AUDUSD continue to lead the G10 currency block having resumed their medium term uptrends, GBP looks to follow while targeting its Aug 21’09 high at 1.6622. Successfully breaking and holding above the latter will clear the way for further upside towards the 1.7041 level, its Aug 05’09 high with a loss of there activating the resumption of its medium term uptrend. 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 and a follow through higher seen, recovery higher is now expected.


EURUSD

EURUSD

EURUSD: Calm After The Storm.

EURUSD : Having rallied strongly on Tuesday breaking above its key resistance at the 1.4446 level to resume its medium term uptrend, EUR was seen digesting those gains in early trading today. The immediate challenge for the pair is to maintain above the 1.4446 level and keep its break higher valid thereby targeting additional higher prices. With that said, EUR has its next upside target located at the 1.4719 level, its Dec 18’08 high with a turn above there allowing further upside 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 1.4446 level, its just eroded former resistance followed by the 1.4405 level and then the 1.4176 level, its Sept 01’09 low. Below there will target its MT rising trendlinecurrently seen at 1.4142. That zone should cap declines and turn the pair back up again if seen. Overall, having invalidated the 1.4446 level and activated the resumption of its medium term uptrend, risk remains to the upside.