HIGHLIGHTS:

GBPUSD: Price Stall To Target The 1.5768 Level-The pair’s recovery higher has stalled at the 1.6118 level and is now turning back lower in early trading today.

EURUSD: Backs Off The 1.4816 Level -Weakness in early trading today has seen the pair taking back part of recent recovery after trading higher to close at ...


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EURUSD: Backs Off The 1.4816 Level

EURUSD - WWeakness in early trading today has seen the pair taking back part of recent recovery after trading higher to close at 1.4772 level on Thursday. That leaves immediate risk to the downside with its Oct 07’09 low at 1.4649 level being the next support. A violation of that level will mean a decline towards the 1.4479 level, its Oct 02’09 low where a cap is expected. While the pair continues to hold above its rising MT trendline, its medium term outlook remains intact. On the upside, its Thursday high at 1.4816 will have to be invalidated to clear the way for a return to the 1.4844 level, its YTD high. Above there will resume its medium term uptrend towards the 1.4875 level, representing its Sept 21’09 high. Further out, resistance is located at its psycho level at 1.5000 and then the 1.5082 level, its Aug 10’08 high. Its daily studies are supportive of this view as they have turned higher. We retain our medium term bullish view on the pair with a break and hold above the 1.4844 level triggering that trend.


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GBPUSD: Price Stall To Target The 1.5768 Level.

GBPUSD - The pair’s recovery higher has stalled at the 1.6118 level and is now turning back lower in early trading today. With its Thursday gains now being wiped out, GBP is presently facing downside pressure towards the 1.5768 level with a loss of there turning focus lower to the 1.5500 level, its psycho level and then its .50 Ret( 1.3652-1.7041 rally) at 1.5350. A return back above the 1.6118 level must occur to reverse its immediate downside pressure and open the door for further upside towards the 1.6300 level, its psycho level and then the 1.6463 level, its Sept 23’09 high where a cap could be seen. Its daily stochasticsremains supportive of this view. With its recovery off the 1.5768 level now reversing, a return back to that level is now envisaged which is consistent with its ST downtrend.