EUR/USD is now well-positioned for further gains and may advance up to 1.3625/30. The following target will be located at 1.3840/1.3900. Dips should be limited by supports at 1.3135 and 1.3048.

On Thursday Pound/Dollar traded within almost 100 pip range. The Cable appreciated from 1.5792 to 1.5886 yesterday, in line with the positive Interbank sentiment at almost +53%, closing the day at 1.5814. Today the British Pound lost all Thursday's gains, descending down to 1.5766. On the 1 hour chart quotes are testing the lower limit of the upward channel, while on the 3 hour chart the upward channel has slowed down. First resistance is yesterday's peak at 1.5886. Break above it should extend the bullish movement further towards 1.6012. The nearest support level is today's bottom at 1.5781. Going bellow it should extend British Pound's reduction further down towards next downward objective 1.5660. Today are UK PPI Output and Input, both at 9:30 GMT. Quotes are moving just bellow the close 20 and 50 EMA on the 1 hour chart, indicating slim bearish pressure. The value of the RSI indicator is negative and inclining upwards, MACD is negative and tranquil, while CCI has thinly crossed down the 100 line on the 1 hour chart, giving over all light short signals.

The EURUSD had another indecisive movement yesterday. Price attempted to push higher topped at 1.3320 but the bullish momentum was disappointing and now retesting 1.3240/50 support area. I still prefer a bullish scenario at this phase with buy on dips intraday strategy still testing 1.3375 as the nearest bullish target but a clear break below 1.3200 – 1.3150 would activate my wait and see mode

The pair holds positive tone off 1.3025 higher platform, after break above 1.3232 tested levels above 1.3300 barrier. Near-term price action, however, remains in sideways mode, as 90 day SMA continues to cap at 1.3320. Failure to clear this level, may see initial test of strong support at 1.3230/20, previous high / near-term range floor and 1.3208, Fib 38.2% of 1.3025/1.3319 upleg, with break here to delay immediate bulls in favor of stronger reversal, while only loss of key near-term support at 1.3025 would sideline bulls. On the upside, lift above 1.3320 to resume short-term uptrend and open 1.3400 and 1.3425, Fibonacci 50% of 1.4246/1.2622 descend.

The pair couldn't hit SMA 100 and started to show a slight bearish tendency as seen on the provided daily graph. Meanwhile, trading continued above the pivotal support of 1.3230 and also above SMA 50. The bearish picture will not come back into focus unless we witness a daily closing below the aforesaid level. The contrarian between the above mentioned factors forces us to stay aside over intraday basis until an actionable setup presents itself to pinpoint the upcoming big move.

The EURO closed higher on Thursday as it extends Tuesday's rally above the 38% retracement level of the OctoberJanuary decline crossing. The highrange close sets the stage for a steady opening on Friday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends the rally off January's low, the 50% retracement level of the OctoberJanuary decline crossing is the next upside target.

Immediately after the BoE announced 50bn instead of 75 bn pounds of additional bond purchase (QE3), the GBP/USD got a boost. However, this was indeed short-lived. It was noted that inability to break back above 1.5875 would be seen as a sign of weakness. While the market did crack this level, the 1H chart shows the dynamic as the market attacked it. There were rejections and the market eventually exhausted for a downturn through the rest of the 2/9 US trading session.

Presumably, the the Double Zigzag [b] of 5 is close to completion . If this assumption is correct, after its completion we can expect a downward price movement in line with the the impulse or Diagonal Triangle formation [c] of 5.

Dollar-Swiss failed to extend its downmove strongly below 0.9100 and has bounced back well from its low of 0.9090. It will have to be seen whether the pair gains upside momentum for further rise. The pair could find Resistance in 0.9160-80 region which could keep it pressured on the downside. We will have to wait and see what happens.

The Bank of England was expected to expand its Bond purchasing program, aka Quantitative Easing from £275bn to £325bn. Economists had forecast a larger expansion of £75bn to £350bn. The sterling market had stalled it’s recent strength coming into the BoE’s scheduled meeting.

Yesterday's minor corrective pattern below 1.3288 has been finalized at 1.3215 low and the uptrend is renewed, heading towards 1.3360, en route to 1.3465. Initial minor support is projected at 1.3267, followed by the crucial low at 1.3215.

Most of the indicators suggest continuation of the bullish trend until EUR/USD reaches 1.3436 with potential of climbing as high as 1.3627. However, we cannot rule out a dip down to an initial support at 1.3108, since the pair is currently struggling at a 1.3250/80 resistance zone.

On Wednesday Pound/Dollar decreased with 130 pips. The Cable depreciated from 1.5929 to 1.5796 yesterday, in converse with the positive Interbank sentiment at nearly +59%, closing the day at 1.5816. Today the British Pound descended slightly further to 1.5792, than commenced recovery. On the 1 hour chart the upward channel has resumed, while on the 3 hour chart the upward channel looks good. First resistance is yesterday's peak at 1.5929. Break above it should extend the bullish movement further towards 1.6048. The nearest support level is today's bottom at 1.5787. Going bellow it should extend British Pound's reduction further down towards next downward objective 1.5660. Today are UK Halifax house price index, Trade in goods, Non-EU trade, Industrial production, Manufacturing output, and BoE meeting announcement and QE Stg, at 8, 9, 9:30 and 12 GMT respectively. Quotes are moving above the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term bullish and medium term bearish pressure. The value of the RSI indicator is positive and inclining upwards, MACD is negative and tranquil, while CCI has thinly crossed up the 100 line on the 1 hour chart, giving over all neutral to light long signals.

Maintains near-term positive tone, breaking briefly above 1.3300 barrier, after yesterday’s 1.3287/14 consolidation. The price approaches 90 day SMA, currently at 1.3320, break of which to signal a resumption of short-term uptrend and focus 1.3429, Fibonacci level. Overbought near-term studies, however, suggest corrective action may precede fresh bulls. Initial supports lie at 1.3232 and 1.3214, yesterday’s range floor, while loss of 1.3200 handle, also 20 day SMA, would delay.

The EURUSD was indecisive yesterday, made a Doji on daily chart. Price attempted to push lower, slipped below 1.3240/50 support area but further bearish pressure was rejected and hit 1.3311 earlier today. There are no changes in my technical outlook. The bias remains bullish in nearest term still testing 1.3375. Immediate support remains around 1.3240/50. A clear break below that area could lead price to neutral zone in nearest term but any downside pullback now is normal and as long as stays above 1.3150 my overall intraday bias remains strongly to the upside and I still prefer to buy on dips.

The pair has achieved one more daily closing above the initial resistance of 1.3225-1.3230 suggesting that the bullishness will continue over intraday basis. SMA 100 becomes a technical objective followed by the next key resistance around 1.3415 zones. Stochastic also remains positive reinforcing our constructive outlook. Only a break below 1.3125 will give us a reason for concern.

GBPUSD - Early gains were rejected with sellers emerging above 1.5900. The subsequent downside momentum resulted in GBPUSD posting a daily Bearish Engulfing formation, a pattern of trading consistent with exhausted bull market momentum and the start of a new bearish bias. However, the decline stalled at the reverse trend line (formed from January 1 and 3 highs - 1.5884-1.5861), and some mild upward pressure has been posted in Asia. This is assessed to be mild and limited as long as price stays below 1.5896 (1.58550-60 prime area of resistance). In view of these facts we are bearish below resistance of 1.5896.

EUR: Euro is currently trading at 1.3253 levels. Euro is trading firm even though Greek political leaders yet again failed to sign off on a tough reform and austerity programme to secure the most vital new international bailout, but Prime Minister Lucas Pademos has said that they would try to strike a deal very soon. Investors are still positive that somehow Greece will avert default and will strike a deal with its private Investors. Looking ahead Euro key interest rates at today's monetary policy decision is expected to stay unchanged. Support is seen at 1.3141 levels (55 days daily EMA) and resistance is seen at 1.3319 levels (100 days daily EMA). EUR/INR is at 65.44 levels. EUR/INR is like to trade in the range of 65.00 and 65.60 levels for the week. Short Term Bullish Medium Term Bearish. Break of 1.33 on a closing basis would turn the outlook quite bullish otherwise still in range of 1.26-1.33.

The EURO closed higher on Wednesday as it extends Tuesday's rally above the 38% retracement level of the OctoberJanuary decline crossing. The midrange close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends the rally off January's low, the 50% retracement level of the OctoberJanuary decline crossing is the next upside target.

GBP/USD has recently completed the high Quality Up Channel chart pattern identified by Autochartist on the hourly charts. The overall Quality of this chart pattern is measured at the 9 bar level as a result of the maximum Initial Trend (rated at the 10 bar level), substantial Uniformity (9 bars) and significant Clarity (7 bars). The top of this chart pattern (point C on the chart below) formed when the pair reversed down from the combined resistance standing at the intersection of the upper resistance trendlines of two more longer-term chart patterns identified by Autochartist for this currency pair (shown below). GBP/USD is expected to fall further toward the Forecast Price 1.5776.