GBP/USD & EUR/USD

Fri, Mar 19 2010, 09:27 GMT
by Carol Harmer


GBP/USD

GBPUSD

1.5180 is key support this session as it is the 50% short term fib level. If we can hold above here then we have scope to trade higher to the daily pivot and excellent resistance in the 1.5240/60 region.

Here you are looking to over all long positions. Sellers may well be waiting here, but they will only hold if we stay below 1.5280. If we fail ninths quest and buyers break higher above here look for 1.5245/50 where would once more cover all longs.

Now the daily charts are still pointing higher, and not really as overbought as the daily Euros...so bear this in mind. We should therefore hold longs to 1.5180 and only reverse if the market makes a break below. If we do breakthrough 1,5180 and hold below here then there will be scope for further weakness with 1.5110 then the short term objective Once more cover on dips to here. Only re-instate shorts through 1.5110 for 1.5080/70.


EUR/USD

EURUSD

Euro stochastics have turned negative leaving this liable to breaks lower... This comes especially we attained med term target of 1.3820 and failed to break it. These moves higher currently are looking to be correctionary...with 1.3580 offering support. However...if we break through this support then we are liable to further downside moves with 1.354 your first target.

If we lose 1.3540 buyers will stay sidelined as this would signal further weakness evident with declines then towards the key support at 1.3440. Here buyers are expected once more and they will hold unless below 1.34.

Now to keep buoyant we need to hold above 1,3580. If we can achieve this then look for 1.3640 to 1.,3670. Here all longs to be covered. Would look to sell rallies at this point given the state of the daily charts, and only reverse if we climb and hold above 1.3725.