GBPUSD: Continues To Face Nearer Term Weakness - The pair continues to be under pressure having backed off its 1.6740 high on Sept 11’09 to collapse further.

EURUSD: Breaks The 1.4719 Level, Targets The 1.4875 Level - Sustained strength saw the pair breaking through its strong resistance in early trading today suggesting that a hold.


GBPUSD

GBPUSD

GBPUSD: Continues To Face Nearer Term Weakness

GBPUSD - The pair continues to be under pressure having backed off its 1.6740 high on Sept 11’09 to collapse further lower to as low as 1.6401 on Tuesday. Nearer term risk remains lower while holding below the 1.6740 level but if a loss of there occurs, GBP should head higher towards its YTD high at 1.7041 where a clean violation will clear the way for the resumption of its broader medium term uptrend towards its psycho level at 1.7200. This view remains consistent with our medium term upside view though now on hold. Immediate support lies at the 1.6401 level with a turn below there pushing the pair further lower towards the 1.6321 level, its Sept 08’09 low and then the 1.6111 level, its Sept 01’09 low. On the whole, though challenged by nearer term weakness, as long as the pair holds above its MT rising trendlinedrawn off the 1.2456 level, bias remains higher medium term.


EURUSD

EURUSD

EURUSD: Breaks The 1.4719 Level, Targets The 1.4875 Level.

EURUSD: Sustained strength saw the pair breaking through its strong resistance in early trading today suggesting that a hold above there especially on a weekly closing basis will keepthe 1.4875 level, its Sept 21’09 high and beyond under pressure. This current strength was triggered following its break above its key resistance at the 1.4446 level the past week triggering the resumption of its medium term. Further out, resistance is located at the 1.5082 level, its Aug 10’08 high. On the downside, corrective pullbacks if activated are expected to target the 1.4634 level, its Sept 11’09 high at first with a break and hold below there creating scope for further declines towards the1.4446 level, its Aug 09 high. This level is of significance in the pair’s current run to the upside, as it is expected to reverse roles and provide support. On the whole, we continue to hold on to out medium term upside view as EUR continues to print higher prices.