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GBPUSD: Bears Still Remain In Control.

GBPUSD: We continue to maintain our bearish bias on GBP as it continues to face downside pressure despite its present attempt at recovery.

Its Monday losses and the mentioned vulnerability leave the pair targeting the 1.6000 level which may hold on an initial test, but if it snaps, the 1.5935 level, its Mar 28’2011 low will be aimed at.

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The pair has been under pressure since losing upside momentum at the 1.6743 level in late April’2011. On the other hand, for the pair to reverse its bear threats, a break and hold above the 1.6516 level will have to be established.

This will open the door for more strength towards the 1.6743 level and then the 1.6877 level, its Nov’2009 high.

A loss of the latter level will pave the way for further strength towards its bigger resistance at the 1.7039 level, its 2009 higher.

GOLD: Bottoms Out, Targets 1,526.26.

GOLD: With a build up on its past week gains now underway, risk of a return above the 1.526.26 level, its May 11’2011 high continues to loom.

If this level is taken out, Gold will head further higher towards the 1.576.20 level, its 2011 high with a violation of that level allowing for the resumption of its long term uptrend towards its psycho level at 1,600 and then the 1,650.00 level.

Its daily RSI is bullish and pointing higher supporting this view. On the downside, the risk to our upside view will be a return below its May 17’2011 low at 1,470.90 level where a break will trigger further weakness towards the 1,462.15 level, its May 05’2011 low and then its .618. Fib Ret (1,380.85- 1,576.20 rally) at 1,455.00.

A test of this level is expected to provide a strong support and turn the commodity back up in the direction of its larger trend.

However, if this fails, the 1,443.70 level, its April 12’2011 low will be targeted ahead of the 1,409.75 level, its Mar 28’2011 low.