Morning,
First we are going to have a peek at the EU pair. This pair has shown a clear DOWNSIDE momentum following its closed at 1.3410 last week. Although a recovery higher was seen on Friday following a test of the 97.91 low, as long as those upside gains are contained by its eroded supported now turned resistance at the 103.54/78 zone, its decline off the 110.67 level, its Aug 15’08 high is likely to head lower through the 100.02 level, its April 10’08 low and the 95.75 level, its YTD low. If that does not happen, then you better look at 102.58 and the 103.54/78 zone for any correction.
OK then. What about GU pair? This is for me a very “dangerous” pair. You have to have guts and solid technical and fundamental knowledge to trade this pair. Nevertheless, it’s always provide the excitement and makes your heart pounding fast 
. A definite DOWNSIDE I reckon. Both in near, short and medium term. For scalpers, look for 1.7049 level as it is very significant. A convincing break there will put GBP in a longer term bearish territory towards the 1.6857 level, its June’03 high and then its .618 Ret (1.3682-2.1161 rally, monthly chart) at 1.6552.Its weekly studies are bearish and trending lower supporting this view. But beware of the bounces! Don’t trade against the trend!
Hepi trading week ahead!
Scridb filter
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