Coming Up Today (all times GMT)

No major impact news are expected today.      

EURUSD

Rallied just above 1.2200 overnight, to retrace slighly back some gains, as short covering continued to boost the pair higher. EU leaders are gathering on Thursday, looking to bolster confidence in the markets about the debt stricken Euro zone members. Markets are expected to be very critical on that, with traders being ready to short the pair if the don't see enough steps in terms of fiscal tightening in the zone. In the mean time, active traders could play both sides of the market, as the pair has formed a nice upper trending canal.

Support/Resistance 1.2125/1.2250

GBPUSD

Increased optimism in global equities has increased risk appetite and benefitted the cable. Later today, UK officials are expected to provide an assessment on the handling of the fiscal situation, by putting down estimates by the previous government for a swift recovery, while providing some incite on tax rises and spending cuts to come. Traders are likely to reward the pound for bold measures to tighten the belt, while at the same selling pressures might build up if the market thinks that implementing too strong measures could hinder recovery.  Support/Resistance 1.4580/1.4725