EURGBP: The cross was seen rallying higher on Thursday back above its Nov 12'09 high at 0.9064 invalidated on Wednesday to close at 0.9096.In early trading today, EURGBP was seen giving back most of its Thursday gains threatening the 0.9064 level again. A stability above there must be established to prevent a decline towards the 0.8970 level, its Nov 25'09 low where a decisive break will target its bigger support located at the 0.8832 level, its Nov 17'09 high. Below there will resume its declines off the 0.9410 level. Its daily RSI remains supportive of this view. On the upside, recovery higher if seen will aim at the 0.9114 level with a turn above there exposing its Dec 01'09 high at 0.9150 followed by the 0.9239 level, its Oct 26'09 high. Beyond there will turn attention to the 0.9410 level, its Oct 13'09 high. We referenced in our Tuesday analysis that while the cross's recovery off the 0.8832 level remains intact, we will want to see a close above the 0.9239 level as that will convince the market of further upside gains Having failed ahead of there and now struggling at the 0.9064 level, our focus is now on the 0.9025/0.8970 levels or even lower.

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