Daily Technical Strategist

Today's Focus: GBPUSD & EURGBP

• GBPUSD: Downside Pressure With Potential For Corrective Bounce.
• EURGBP: Holding Within Its Rising Channel.

GBPUSD

Although a fourth day of downside losses was recorded at the end of Monday trading session, the formation of a hammer candle now suggests that a temporary bottom may be forming. In such a case, a follow through higher on the mentioned hammer must occur to trigger further upmove towards the 1.4305 level, its Mar 06'09 low with a cut through there setting the stage for additional upside gains towards the 1.4662 level, its Feb 23'09 high. Above there must be traded to turn focus to its Jan 16'09/Feb 09'09 highs at 1.4981/86 and possibly higher. On the other hand, while the 1.4662 level remains unbroken, risks exist for price declines towards the 1.3845 level, its Mar 18'09 low and then the 1.3655 level, its Mar 11'09 low .Daily stochastics and RSI remain bearish as well, pointing towards further weakness. All in all, the pair's current downside weakness remains consistent with its medium to longer term bearish outlook.

Support Comments
1.4137 Feb 12'09 low
1.3845 Mar 18'09 low
1.3655 Mar 11'09 low

Resistance Comments
1.4305 Mar 06'09 high
1.4662 Feb 23'09 high
1.4981/86 Jan 16'09/Feb 09'09 highs

EURGBP

Continuation of Friday weakness was seen on Monday pushing the cross marginally lower to close at 0.9254.With EURGBP trading in an established ST rising channel, potential of the cross maintaining its recovery triggered at the 0.8638 level remains high. Upside objectives are seen at the 0.9418 level, its Mar 27'09 high followed by the 0.9499/0.9521 levels, its Jan 26'09/Mar 18'09 highs with a decisive turn above there accelerating gains higher towards the 0.9650 level, its Jan 02'09 high and subsequently its 2008 high at 0.9803.Supports are located at the 0.9145 level, its Mar 16'09 low and then the 0.9073 level, its Jan 26'09 high with the next one seen at the 0.9011 level, its Mar 02'09 high. On the whole, though struggling since failing at the 1.9499 level, as long as the cross continues to hold within its established rising channel, risks of higher prices are likely.

Support Comments
0.9145 Mar 16'09 low
0.9073 Jan 26'09 high
0.9011 Mar 02'09 low

Resistance Comments
0.9320 Mar 12'09 high
0.9418 Mar 27'09 high
0.9521 Jan 26'09 high

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which the author incur any responsibility. The does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report