HIGHLIGHTS:

GBPUSD: Hesitating With Eyes On The Upside - The pair closed marginally higher Wednesday building slightly on its Tuesday gains but price hesitation continues to be seen ahead of its key resistance residing.

EURUSD: Strengthens Further, Maintains MT Uptrend - EUR rallied further Wednesday following through on its breakout gains above the 1.4446 level on Tuesday to close higher at 1.4547.


GBPUSD

GBPUSD

GBPUSD: Hesitating With Eyes On The Upside.

GBPUSD - The pair closed marginally higher Wednesday building slightly on its Tuesday gains but price hesitation continues to be seen ahead of its key resistance residing at its Aug 21’09 high at 1.6622. A convincing break and close above there must occur to clear the way for further upside towards the 1.7041 level, its Aug 05’09 high with a loss of that level 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: Strengthens Further, Maintains MT Uptrend.

EURUSD - EUR rallied further Wednesday following through on its breakout gains above the 1.4446 level on Tuesday to close higher at 1.4547. Although it was seen hesitating in early trading today, its overall medium term upside triggered following the mentioned break remains intact with further upmoveexpected towards the 1.4599 level, marking its minor high. Beyond there will clear the way for a push towards the 1.4719 level, its Dec 18’08 high with a turn above the latter allowing further upside targeting the 1.4875 level, 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 aim at 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.