GBPUSD: A second day of higher closes has seen the pair follow through to the upside in early trading today but as long as the new recovery remains contained by the 1.9598 level, its April 15’08 low, GBP should head lower again towards the 1.9360/35 area, marking its 2008 lows and then the 1.9180 level, its Mar 04’07 low. Weekly momentum indicators remain suggestive of further strength. On the upside, clearing the 1.9598 level should propel the pair higher aiming at the 1.9727/19 area, its Mar 05’08/April 01’08 lows initially and next the 1.9963/ 2.0026 levels, its Feb 27’08/April 21 & 28’08 highs. Further gains could trigger upmove towards the 2.0191 level, its Mar 27’08 high and ultimately its Mar 14’08 high at 2.0396.All in all, downside bearishness remains in place though a nearer term corrective recovery is now shaping up.

Support Comments

1.9360/35 2008 lows.

1.9180 Mar 04’07 low

1.8902 Weekly 200 Ema

Resistance Comments

1.9598 April 15’08 low

1.9674/53 April 25’08 low/Aug 17’07 high

1.9727/19 Mar 05’08/April 01’08 lows

1.9963/2.0026 Feb 27’08/April 21 & 28’08 highs

Daily Chart:GBPUSD

EURUSD: While ST Risk Continues To Point Lower, Nearer Term Recovery Is Now Hesitating.

EURUSD: Although the pairs current recovery off the 1.5383 low may have some way to go, as long as the said corrective upside gains are limited to the 1.5593 level, its May 06’08 high and the 1.5710 level, its April 18’08 low risk to downside remains with the 1.5360/41 area, its May 02’08/Mar 24’08 lows/.382 Ret (1.4438-1.6018 rally) and its May 08’08 low at 1.5283 seen as downside objectives. Below the latter will open the door for further downside weakness towards the 1.5164 level, its .50 Ret (1.4309-1.6018 high) and then its .618 Ret at 1.5048.This view remains supported by its weekly studies.However,if the 1.5710 level is taken out, downside pressure will be minimized bringing more upside gains towards the 1.5895/I 5912 area, its Mar 31’08 high/April 10’08 high and even higher. On the whole, while the broader bias remains to the upside, current price action still suggests a bearish short term trend.

Support Comments

1.5360/41 .382 Fib Ret/Mar 24’08 low/May 02’08

1.5164 .50 Ret (1.4309-1.6018 high)

1.5048 .618 Ret

Resistance Comments

1.5593 May 06’08 high

1.5626/00 April 07’08 low/Psycho Level

1.5710 April 18’08 low

1.5895/I 5912 Mar 31’08 high/April 10’08 High

Daily Chart:EURUSD