HIGHLIGHTS:

GBPUSD: Weakness To Target The 1.6306 Level - Weakness triggered off the 1.6740 level on Sept 11’9 continues to drive the pair further declining in early trading today to.

EURUSD: Remains Biased To The Upside Medium Term - The pair continued its strength on Monday printing a new medium term high of 1.4651 to close at 1.4636.


GBPUSD

GBPUSD

GBPUSD: Weakness To Target The 1.6306 Level.

GBPUSD - Weakness triggered off the 1.6740 level on Sept 11’9 continues to drive the pair further declining in early trading today to as low as 1.6464 as at the time of this analysis. While this persists, GBP should trade lower and possibly target its MT rising trendlineinitiated at the 1.2456 currently at 1.6306 where we envisage a cap to turn the pair back up. However, if a loss of there occurs further downside could shape up towards the 1.6111 level, its Sept 01’09 low. Its daily RSI remains supportive of this view. On the other hand, in order to reverse its current declines, GBP must break back and hold above the 1.6740 level to clear the way for more upside gains targeting its YTD high at 1.7041 with an eventual breach of there resuming its MT uptrend which is currently on hold. On the whole, though weakening, as long as the pair holds above its MT rising trendlinedrawn off the 1.2456 level, bias remains higher medium term.


EURUSD

EURUSD

EURUSD: Remains Biased To The Upside Medium Term.

EURUSD: The pair continued its strength on Monday printing a new medium term high of 1.4651 to close at 1.4636. Although an early morning trading price action today saw the pair hesitating and weakening , its overall trend remains higher suggesting that the mentioned price action remains corrective of its MT uptrend. In such a case, its minor support printed mondayat 1.4514 will come in as initial support ahead of its stronger support residing at the 1.4446 level, its Aug 09 high where a reversal of roles is expected to turn EUR higher again. On the upside, halting its current weakness will turn focus to the 1.4651 level initially with a loss of there driving the pair further higher towards the 1.4719 level, its Dec 18’08 high. Beyond the latter will create scope for further upside targeting the 1.4875 level, its Sept 21’09 high. Larger time frame charts are supportive of this view. On the whole, though hesitating, EUR remains biased to the upside in the medium term.