HIGHLIGHTS:

GBPUSD: Follow - Through Higher Seen, Targets the 1.6566 Level - With a higher close seen on Tuesday from its corrective recovery triggered off the 1.6132 level, its Sept 21’09 low and a follow-through higher.

EURUSD: Maintains Above The 1.4717 Level, Eyes Further Upside - Having decisively broken and held above the 1.4719 level, its Dec 18’09 high, EUR now looks to head further higher targeting.


GBPUSD

GBPUSD

GBPUSD: Follow - Through Higher Seen, Targets the 1.6566 Level.

GBPUSD - With a higher close seen on Tuesday from its corrective recovery triggered off the 1.6132 level, its Sept 21’09 low and a follow-through higher today testing the back of its broken MT rising trendlinecurrently at 1.6432, risk of a break back above the mentioned broken trendlineis now building up. If that occurs, additional higher prices should shape towards the 1.6566 level ahead of the 1.6742 level, its July 30’09 high and then possibly higher targeting its YTD high at 1.7041. Above the latter will activate the resumption of its medium term uptrend now on hold. 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 low where 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, GBP looks poised to correct higher as it is testing the back of its broken MT rising trendline.


EURUSD

EURUSD

EURUSD: Maintains Above The 1.4717 Level, Eyes Further Upside.

EURUSD - Having decisively broken and held above the 1.4719 level, its Dec 18’09 high, EUR now looks to head further higher targeting the next tar resistance standing at the 1.4875 level, representing its Sept 21’09 high. A trade above the latter will clear the way for a run at its psycho level at 1.5000 where a break will accelerate further upside towards the 1.5082 level, its Aug 10’08 high.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. Its overbought studies are now building a case for corrective pullbacks. On the whole, having continued to print higher level prices, EUR remains poised to target additional upside gains towards the 1.4875 level.