HIGHLIGHTS:

GBPUSD: Nearer Term Weakness Continues To Dominate - As indicated in our analysis on Thursday, GBP remains biased to the downside nearer term and was seen weakening through its MT rising trendlinedrawn off the 1.3652 level currently at 1.6350 today.

EURUSD: Corrective Pullbacks Looks To Shape Up - As EUR was seen trading below its Thursday high (1.4766) in early trading today following a close above its key resistance at the 1.4719 level, potential for corrective pullbacks could be shaping up.


GBPUSD

GBPUSD

GBPUSD: Nearer Term Weakness Continues To Dominate.

GBPUSD: As indicated in our analysis on Thursday, GBP remains biased to the downside nearer term and was seen weakening through its MT rising trendlinedrawn off the 1.3652 level currently at 1.6350 today. Ultimately invalidating that level on a weekly closing basis will create a chart damage and open up further risk lower towards the 1.6111 level, its Sept 01’09 low with a loss of the latter pushing the pair additionally lower towards the 1.6000 level, its psycho level and then the 1.5982 level where its July 08’09 low is located. Its daily RSI is bearish and trending lower suggesting further weakness. To the upside, immediate resistance now lies at its trendlinebreak out point at 1.6350 followed by the 1.6401 level, its Sept 15’09 low with a cut through there exposing the 1.6566 level, its Sept 17’09 high and next its Sept 10’09 high seen at 1.6740. Beyond there will target its YTD high at 1.7041. On the whole, with nearer term weakness dominating the pair’s price action and a trade below its MT rising trendlinenow seen, risk of further downside are expected.


EURUSD

EURUSD

EURUSD: Corrective Pullbacks Looks To Shape Up

EURUSD: As EUR was seen trading below its Thursday high (1.4766) in early trading today following a close above its key resistance at the 1.4719 level, potential for corrective pullbacks could be shaping up. Its daily studies which are deeply overbought add to this view and if that plays out, declines could be seen towardsthe 1.4634 level, its Sept 11’09 high at first with a break and hold below there creating scope for further declines towards the 1.4446 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 other hand, to reverse this threat, EUR must break and close above the 1.4719 level with a hold above there triggering further upside gains towards the 1.4875 level, its Sept 21’09 high ahead of the 1.5000 level, its psycho level and then the 1.5082 level, its Aug 10’08 high. On the whole, EUR still maintains its bullish medium term outlook suggesting that any weakness at this stage is seen as corrective.