GBPUSD: Turns Sharply Higher, Looks To Reverse Gains.

GBPUSD : GBP was seen wiping out most of its two-day gains initiated off the 1.6555 level in early trading today. If an eventual reversal of those gains occur on a closing basis today, risk for the pair will turn to 1.6584 level where its July 23'09 high is located. While GBP still retains its medium term upside outlook as long as it holds above its MT rising trendline, a break and hold above its 2009 high at 1.6742 will be required to resume that uptrend towards the 1.7000 level, its psycho level. On the downside, its July 22'09 low at 1.6308 comes in as the initial support followed by the 1.6034 level, its July 13'09 low and then its July 08'09 low at 1.5984. Although the last two levels are expected to reverse roles and provide support, a turn below there will set the stage for a move lower towards the 1.5802 level, its Jun 08'09 low. All in all, GBP looks to retarget the 1.6742 level as it still maintains its overall medium term upside bias.

Support Comments

1.6308 July 22'09 low
1.6034/00 July 13'09 low/psycho level
1.5984 July 08'09 low

Resistance Comments 

1.6584 July 23'09 high
1.6742 Jun 30'09 high
1.7000 Psycho level

Daily Chart: GBPUSD

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EURGBP: Attacks Its Rising Trendline.

EURGBP: The cross continues to weaken attacking and even testing below its ST arising trendline drawn from the 0.8399 level, its YTD low in early trading today. This development is coming on the back of a price failure at the 0.8683 level, its July 27'09 high and now leaves EURGBP targeting its Jun 30'09 low at 0.8434 with a loss of there turning attention to its YTD low at 0.8399. Beyond that level will leave the cross resuming its medium term declines. Its daily studies are bearish and turning lower suggesting further downside weakness. Conversely, if a recovery is seen, the 0.8545 level, its July 14'09 low and then the 0.8600 level, its psycho level will be aimed at followed by the 0.8698 level, its July 13'09 high. On the whole, with losses triggered at the 0.8699 level continuing to be seen, EURGBP remains biased to the downside.

Support Comments 

0.8434 Jun 30'09 high
0.8399 YTD low
0.8200 Psycho level

Resistance Comments 

0.8545 July 14'09 low
0.8600 Psycho level
0.8698 Hammer high

Daily Chart: EURGBP

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