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GBPUSD: While GBP continues to trade below its eroded support at the 1.9598 level (April 1508 low), risks for a push towards its 2008 lows at 1.9360/35 and beyond are likely. If that is seen, further weakness targeting the 1.9180 level, representing its Mar 0408 low should follow. Both the daily and weekly studies remain in alignment with this view. The 1.9598 level is now expected to revert to resistance on any recovery from the present level where a break could cause further corrective recovery towards the 1.9727/19 area, its Mar 0508/April 0108 lows ahead of the 1.9963/ 2.0026 levels, its Feb 2708/April 21 & 2808 highs and then the 2.0191 level, its Mar 2708 high. All in all, pressure continues to build on the downside with the 1.9360/35 zone serving as the next objective.

Support Comments

1.9360/35 2008 lows.

1.9180 Mar 0407 low

1.8902 Weekly 200 Ema

Resistance Comments

1.9674/53 April 2508 low/Aug 1707 high

1.9727/19 Mar 0508/April 0108 lows

1.9963/2.0026 Feb 2708/April 21 & 2808 highs

2.0191 Mar 2708 high

Daily Chart:GBPUSD

EURUSD: Recovers Off 1.5288 Low, Price Action Remains Corrective.

EURUSD: EUR recovered higher to close the session at 1.5405 Thursday after pushing below its May 0208/Mar 2408 lows/.382 Ret (1.4438-1.6018 rally) at 1.5360/41 on intra basis. A follow-through to the upside in early trading today suggests that the said recovery off the 1.5288 low has some more upside to go. In such a case, the 1.5510 level, its April 0308 low will serve as nearby resistance followed by the 1.5593/1.5626 zone, its May 0508 high/April 0708 low/psycho level and then the 1.5710 level, its April 1808 low. Above the latter will open up risk towards the 1.5895 /me 5912 area, its Mar 3108 /April 1008 highs and then its psycho level/YTD high at 1.6000/18.Its daily RSI remains supportive of this view as it has turned higher. On the other hand, a break and hold below the 1.5360/41 zone will be required to trigger the resumption of its decline from the 1.6018 high towards the 1.5164 level, its .50 Ret (1.4309-1.6018 high) ahead of its .618 Ret at 1.5048.On the whole, although a nearer term recovery is now in place, its short term downtrend still dominates suggesting lower prices after that correction.

Support Comments

1.5360/41 .382 Fib Ret/Mar 2408 low/May 0208

1.5164 .50 Ret (1.4309-1.6018 high)

1.5048 .618 Ret

Resistance Comments

1.5626/00 April 0708 low/Psycho Level

1.5710 April 1808 low

1.5895/I 5912 Mar 3108 high/2008 Peak

1.6000/18 Psycho Level/YTD high

Daily Chart:EURUSD

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