GBPUSD: Follow Through Failure

GBPUSD-GBP gave back its intra day gains Tuesday to close lower after testing a high of 1.6555. Although it is still maintaining its upside bias above its MT rising trendline, it now requires a clean break and hold above its minor resistance 1.6584 to clear the way for a run at its 2009 high at 1.6742. Invalidating that level will resume its medium term uptrend and open further upside 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. While 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

/

USDJPY: Reverses Upside Gains.

USDJPY: Having given back its Monday gains on Tuesday, risk remains for further corrective declines targeting its swing low at its July 23’09 low at 93.08. A turn below that level if seen will bring further declines towards the 92.70 level, its July 14’09 low and then the 91.73 level with a clearance of the latter creating scope for more weakness towards its psycho support at 90.00 level. Its daily RSI has turned lower supporting its current weakness. On the other hand, a break and hold above the 95.38 level will have to occur to trigger the resumption of its rise from the 91.73 level. Further out, resistance is located at the 96.97 level, its July’09 high. Above there if seen will expose the 98.88 level, its Jun 05’09 high.On the whole, USDJPY retains its overall bearishness while maintaining within its declining channel.

Support Comment

93.08July 23’09 low

92.70 July 14’09 low

91.56 Channel Support

Resistance Comments

95.38 July 27’09 high

96.97 July’09 high

98.88 Jun 05’09 high

/