GBPUSD: With a follow-through lower seen Tuesday on its Monday losses, potential for further downside losses continues to shape up targeting the 1.6273 level, representing its Aug 17'09 low. On a decisive cut through there, the pair should head further lower towards the 1.6206 level, its weekly 50 ema followed by the 1.6034 level, its July 13'09 low and then its July 08'09 low at 1.5984. Its daily and weekly RSI remain supportive of this view. On the other hand, in case of any recovery, its Aug 13'09 high at 1.6664 will be  aimed at initially with a clearance of there driving it further higher towards the 1.6742 level, its July 30'09 high before the 1.7000 level and then  the 1.7041 level, its Aug 05'09 high. Overall, with continued trading below its broken MT rising trendline seen, risk of more declines are now likely.

Support        Comments

1.6273           Aug 17'09 low

1.6206           weekly 50 ema

1.6034           July 13'09

Resistance   Comments

1.6664           Aug 13'09 high

1.6584           July 23'09 high

1.6742           Jun 30'09 high

Daily Chart: EURUSD


EURGBP: Maintains Upside Momentum, Targets The 0.8866 Level.

EURGBP: Having broken and held above its key resistance  at the 0.8698 level, its July 13'09 high, EURGBP  is now heading further higher as evidenced by its early morning strength. This development now leaves the next resistance at the 0.8866 level, its Jun 05'09 high. Its daily studies have turned higher suggesting further strength. Conversely, supports are located at the 0.8698 level, its July 13'09 high and the 0.8572 level, its July 23'09 low with the former expected to reverse roles and provide support turning the cross higher again. Other supports are located at the 0.8572 level, its July 23'09 low and then the 0.8545 level, its July 14'09 low. On the whole, with continued recovery higher seen and the 0.8698 level taken out, EURGBP should target additional upside gains in the days ahead.

Support              Comments

0.8698                 July 13'09 high

0.8572                  July 23'09

0.8434                 Jun 30'09 high

Resistance          Comments

0.8866                 Jun 05'09 high

0.8900                 Psycho level

0.9000                 Psycho level

Daily Chart: GBPUSD