HIGHLIGHTS:

GBPUSD: TrendlineBreak Highlights The 16514 level - GBP ended a third-day of downside weakness on Thursday breaking below its short term trendline(clearly seen on the....

EURUSD: Upside Seen Above The 1.4736/1.4625 levels - Price hesitation continues to be seen with EUR holding firmly above its LT rising trendlineand its major emas…


GBPUSD

GBPUSD

GBPUSD: TrendlineBreak Highlights The 16514 level.

GBPUSD - GBP ended a third-day of downside weakness on Thursday breaking below its short term trendline(clearly seen on the 4 hourly chart) drawn from the 1.5706 level and switching focus to the 1.6514 level where its Nov 12’09 is located. Further downside momentum if seen will pave the way for a run at the 1.6249/60 area, its Oct 26’09/Nov 03’09 lows. These two key levels must hold if tested to prevent the pair from declining further and targeting its big support standing at its Oct 30’09 high at 1.6124 level ahead of the 1.5706 level, its Oct 13’09 low.Itsdaily RSI is bearish and pointing lower supporting this view. However, a break above its invalidated trendlineis required to halt its current downside weakness and bring further upmovetowards the 1.6875 level, its Nov 16’09 high with a clean penetration of there pushing the pair further higher towards its YTD high at 1.7041. Above that level will resume pair’s medium term uptrend and open up upside risk towards its .50 Ret (2.1160-1.3501 decline) at 1.7314 ahead of the 1.7630 level, its Oct 12’08 high.


EURUSD

EURUSD

EURUSD: Upside Seen Above The 1.4736/1.4625 levels.

EURUSD - Price hesitation continues to be seen with EUR holding firmly above its LT rising trendlineand its major emas. We maintain that while the pair holds above the mentioned support levels chances are for a return to its YTD high at 1.5062 with an eventual break of there creating scope for further upside towards the 1.5082 level, its Aug 10’08 high and next its 1.5283 level, its May 04’08 low. However, a break below the 1.4736 level and the 1.4625 levels will have to be seen to reverse our upside view and bring further losses towards its Oct 02’09 low at 1.4479. Also we expect a combination of the first mentioned levels(1.4736 and 1.4625) to provide strong support if tested and turn the pair back up.