GBPUSD: GBP short sharply lower in early morning trading today following a two-day of hesitation after climbing above its daily falling channel on Wednesday. While overbought condition continues to weigh on the pair, risk remains to the downside with its Mar 05’08/April 01’08 lows at 1.9727/19 seen as the next downside target ahead of the 1.9598 level, its April 15’08 low and then the 1.9360/35 area, its 2008 lows.However, trading and holding above the 1.9727/19 level or even the 1.9674/53 area should see the pair retesting its May 22’08 high at 1.9848 and possibly break through there targeting the 1.9963/ 2.0026 levels, its Feb 27’08/April 21 & 28’08 highs and later the 2.0191 level, its Mar 27’08 high. Another resistance is located at the 2.0396 level, its Mar 14’08 high. All in all, broader bias remains to the downside suggesting that its recent recovery is corrective.

Support Comments

1.9727/19 Mar 05’08/April 01’08 lows

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

1.9598 April 15’08 low

1.9360/35 2008 lows.

Resistance Comments

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

2.0191 Mar 27’08 high

2.0396 Mar 14’08

Daily Chart: GBPUSD

EURUSD: Consolidation To Further Upside Gains Remains.

EURUSD: As a run to the upside off the 1.5283 low (May 09’08) begins to consolidate due to overbought condition, the pair may head lower to unwind the said condition before an attempt on the upside could be seen again. In such a case, the 1.5710 level, its April 18’08 low followed by the 1.5593 level, its May 06’08 high will serve as initial objectives followed by the 1.5360/41 area, its May 02’08/Mar 24’08 lows/.382 Ret (1.4438-1.6018 rally).Below there will bring pressure on its May 08’08 low at 1.5283.On the upside, the 1.5895/I 5912 area, its Mar 31’08 high/April 10’08 high will be aimed at on breaking and closing above its minor high at 1.5813 and then its YTD high at 1.6018.On the whole, having held on to most of its gains off the 1.5283 level,EUR should resume the recovery on ending its current consolidation.

Support Comments

1.5710 April 18’08 low

1.5593 May 06’08 high

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

1.5164 .50 Ret (1.4309-1.6018 high)

Resistance Comments

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

1.6018 YTD High