GBPCHF: Maintains Upside Bias, Pressure Builds up On The 1.4296 Level.
GBPCHF: With a weekly higher close recorded the past week, the cross now looks to build up on its recovery gains triggered from the 1.1465 level in the new week.
This if seen will leave the 1.4296 level, its May 22’2011 high as the next upside target with a violation of there setting the stage for a push further higher towards its May 20’201 high at 1.4363.
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Further out, the 1.4548 level, its May 08’2011 high comes in as another upside target. Its weekly RSI is bullish and pointing higher suggesting further strength.
On the downside, support on pullbacks stands at the 1.3710 level, its Sept 20’2011 low followed by the 1.3533 level where we expect a reversal of roles as support to occur and turn the cross higher in the direction of its nearer term uptrend.
However, a failure of this to materialize will call for more weakness towards the 1.3128 level and subsequently the 1.2519 level.
EURGBP: Downside Pressure Mounts On The 0.8530 Level.
EURGBP– The cross continues to maintain its downside vulnerability selling off sharply at the end of week and opening the door for further weakness towards the 0.8530 level, its Sept’2011 low.
EURGBP has been under pressure since tumbling off the 0.8792 level on Sept 23’2011 following its recovery failure.
A decisive clearance of the 0.8530 level will resume its medium term weakness towards the 0.8460 level, its Mar’2011 low and then the 0.8355 level, its Feb’2011 low. Its daily and weekly RSI are bearish and pointing lower supporting this view.
Alternatively, the cross may still be trading and holding within its established rising channel (weekly chart) but will have to convincingly break and hold above the 0.8794 level, its Sept 21’2011 high and the 0.8885 level, its Aug 10’2011 high to end its current bear threats and target the 0.9083 level, its Jun 01’2011 high.
Further out, resistance comes in at the 0.9150 level, its Feb’2010 high.
