GBPUSD:Loses Higher Corrective Momentum

GBPUSD-The pair's inability to break back and hold above its invalidated rising trendlinesaw it turning back lower Wednesday to close at 1.6353. It was seen following through lower in early trading today and now looks to head towards its Sept 21'09 low at 1.3132 with a break below there accelerating further declines towards the 1.6112 level, its Sept 02'09 low where a ceiling is expected. Below there if seen will target the 1.5982 level, which marks its July 08'09 and then the 1.5742 level, its July 30'09 high. Its daily RSI has turned lower supporting this view. On the other hand, GBP must break back above its broken trendlineto reduce its current downside pressure and open up additional upside towards the 1.6566 level ahead of the 1.6742 level, its July 30'09 high and then possibly higher targeting its YTD high at 1.7041. Above the latter will activate the resumption of its medium term uptrend now on hold. On the whole, having failed on upside attempts, GBP now looks to retarget the 1.3132 level and possibly lower.

Support              Comments
1.6132/12            Sept 21'09/Sept 01'09 lows
1.6034/00            July 13'09 low/psycho level
1.5742                 July 30'09 high

Resistance        Comments
1.6350                 MT trendline
1.6401                 Sept 15'09 low
1.6740                 July 30'09 high


EURUSD: Broader Bias Remains Higher Medium Term.

EURUSD: Although EUR backed off the 1.4843 level following its intra day rally Wednesday to close lower at 1.4726, as long as the pair continues to hold above is major emas, the 1.4446 level and its MT rising trendline, risk remains to the upside medium term. This suggests that its present price stall remains corrective of its recent move to the upside. Nearby resistance lies at the 1.4826 level with a cut through there allowing the pair to head further higher towards the 1.4875 level, representing its Sept 21'09 high and then its psycho level at 1.5000 where a break will accelerate further upside towards the 1.5082 level, its Aug 10'08 high. On the downside, weakness if seen will trigger declines towards the 1.4736/19 level, its Sept 16'09/Dec 18'08 highs ahead of the 1.4634 level, its Sept 11'09 high with a break and hold below there creating scope for further pressure towards the 1.4446 level, its Aug 09 high. This level is of significance in the pair's current run to the upside, as it is expected to reverse roles and provide support. Its overbought studies are now building a case for corrective pullbacks. On the whole, having continued to print higher level prices, EUR remains poised to target additional upside gains towards the 1.4875 level and beyond.

Support                    Comments
1.4736/19                   Sept 16'09/Dec 18'08 highs
1.4634                        Sept 11'09 high
1.4446                        Aug 05'09 high

Resistance              Comments
1.4875                       Sept 21'09 high
1.5000                       Psycho level
1.5082                       Aug 10'08 high