GBP/USD could not match the previous lows of 1.5325, holding just above at 1.5337. Failure to break lower did push the market higher, and once more we are back above 1.5400. The pattern evident on the 60min charts is quite a bullish one for the short term players, and if we can maintain above 1.5400 early in the session then we can trade higher with 1.5580 to 1.5620 the targeted area.

Buyers would be advised to cover all longs to here as it is unlikely that we can break this resistance today.

Failure to hold over 1.5400 puts a more weaker tone on the market and should allow sellers to use this failure to drive us lower with 1.5335/25 once more in their sights. Sellers are expected to cover shorts to here. Only a loss of 1.5320 would tempt sellers back into the market, and they would then be looking for 1.5255.

Eur/Usd came higher yesterday, reaching 1.2855. we have eased back overnight and retraced 38% of the move higher back to 1.2780. If we can stay trading above this support this morning we should be able to continue higher with 1.2850/60 once more targeted. Buyers are advised to cover ahead of this resistance. Sellers are expected here, and this should prove to be quite a difficult barrier to break. However if we do break 1,2860 buyers would be back into the market once more and we could trade higher then to 1.2920.

If 1.2780 is lost it would bolster the sellers confidence a bit and they would be willing to come back onto the market and take us lower for 1.2710/1.2690. They would cover shorts to here as buyers would be expected. However if we lose 1.2690 expect buyers to jump from longs and join sellers taking this lower for 1.2626/24 once more.

Eur/Gbp Kept the pressure to the topside and hit 8327. We did not ease back from here that much and again this morning we are heading higher once more. Resistance remains at 8325/27, and if we can break above this resistance today then we can go higher with 8375/80 seen as your short term objective.

Failure to break the 8325/27 resistance leaves the downside once more exposed and declines through to 8266/55 should occur quite quickly. If below 8246 further weakness would then be evident with 8211 targeted.