HIGHLIGHTS:

EURGBP: Breaks The 0.9299 Level, Resumes Its ST Uptrend - A follow-through higher on the cross’s upmoveoff the 0.9076 level saw it rallying and decisively violating the 0.9299 level (Sept 27’09 high) today.

GBPUSD: On The Verge Of Taking Out The 1.5768 Level - The pair was seen declining further lower in early trading today testing below the 1.5768 level and suggesting further weakness of an eventual a loss of the mentioned level.


EURGBP

EURGBP

EURGBP: Breaks The 0.9299 Level, Resumes Its ST Uptrend

EURGBP: A follow-through higher on the cross’s upmoveoff the 0.9076 level saw it rallying and decisively violating the 0.9299 level (Sept 27’09 high) today. With the resumption of its short term uptrend activated, risk remains higher for further strength towards the 0.9499 level, its Mar’09 high with a turn above there yielding further upmovetowards its Dec’08 high at 0.9803. Beyond the latter will resume its medium to longer term uptrend targeting the 1.0000 level, its big psycho level/parity level. Its RSI is bullish and pointing higher suggesting further strength. On the downside, its invalidated resistance should now reverse roles and provide support on any pullback. Further out, supports are located at 0.9158 level, its Oct 08’09 low and the 0.9076 level, its Sept 30’09 low. A cap is expected at that level if seen but if it is violated, the 0.9000 level, its psycho level followed by the 0.8868 level, its May’09 high will be targeted.On the whole, with a resumption of its short term uptrend triggered, potential for further upside gains is likely.


GBPUSD

GBPUSD

GBPUSD: On The Verge Of Taking Out The 1.5768 Level

GBPUSD: The pair was seen declining further lower in early trading today testing below the 1.5768 level and suggesting further weakness of an eventual a loss of the mentioned level. We have highlighted this weakness in the short term in our weekly analysis and a loss of the 1.5768 level will turn focus lower to the 1.5500 level, its psycho level and then its .50 Ret (1.3652-1.7041 rally) at 1.5350. Our outlook for GBP remains lower shorter term as long as it continues to hold below its invalidated MT rising trendline. Its daily momentum indicators are bearish and trending lower supporting this view. Conversely, in order for the pair to reduce its current downside pressure, it requires a break and hold above the 1.6124 level. Further out, resistance is seen at the 1.6300 level, its psycho level and then the 1.6463 level, its Sept 23’09 high where a cap could be seen. All in all, GBP remains biased to the downside shorter term and now looks to head towards the 1.5768 level and possibly lower.