HIGHLIGHTS:

GBPUSD: Turns Higher Off Hammer Low - GBP halted its declines triggered off the 1.6740 high on Sept 11’09 on Monday printing a hammer candle and following through higher in.

EURUSD: New Fresh High Puts The 1.4875 Level Under Pressure - A two-day recovery ended in another break higher in early trading today pushing EUR further higher to the 1.4797 level.


GBPUSD

GBPUSD

GBPUSD: Turns Higher Off Hammer Low.

GBPUSD - GBP halted its declines triggered off the 1.6740 high on Sept 11’09 on Monday printing a hammer candle and following through higher in early trading today. With the hammer confirmation triggered, risk now remains for corrective upmovetowards its broken trendlineback at 1.6408 where a cap is expected to turn the pair lower again. If this fails, higher prices could develop towards the 1.6742 level, its July 30’09 high and possibly higher targeting its YTD high at 1.7041. Its daily RSI which has turned higher remains supportive of this view. Conversely, reversing its current recovery will clear the way for declines towards its Monday low at 1.6132 followed by the 1.6112 level, its Sept 02’09 lowwhere a ceiling is expected. Below there if seen will target the 1.5982 level, which marks its July 08’09 and then the 1.5742 level, its July 30’09 high. On the whole, though currently challenging higher prices, as long as the pair holds below its broken MT rising trendline, risk remains lower.


EURUSD

EURUSD

EURUSD: New Fresh High Puts The 1.4875 Level Under Pressure.

EURUSD: A two-day recovery ended in another break higher in early trading today pushing EUR further higher to the 1.4797 level at the time of this analysis. This is coming on the back of a hammer formation on Monday and with fresh upside offensives seen, the 1.4875 level, representing its Sept 21’09 high will now be targeted ahead of its psycho level at 1.5000. On the downside, weakness if seen will trigger declines towards the 1.4736/19 level, its Sept 16’09/ Dec 18’08 highs ahead of the 1.4634 level, its Sept 11’09 high with a break and hold below there creating scope for further pressure 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 whole, having continued to print higher level prices, EUR remains poised to target additional upside gains towards the 1.4875 level.