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GBPUSD: Breaks the 1.6255/60 levels, Sets Up For The 1.6110 Level.

GBPUSD: Having followed through lower during Friday trading session today and violated the 1.6255/60 levels, its Aug 15 & 25’2011 lows, risk has turned to the 1.6110 level, its Aug 11’2011 low.

This is coming on the back of a loss of upside momentum at the 1.6614 level. Below there will set the stage for further weakness towards the 1.6006 level and ultimately, the 1.5778 level, its July’2011 low.

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Its daily RSI is bearish and pointing lower suggesting further weakness. On the upside, GBP will have to break and hold above the 1.6614 level to halt its present bear threats.

This if seen will bring further upside gains towards the 1.6743 level, its 2011 high and then the 1.6900 level, its psycho level.

EURUSD: Hesitates Above Falling Trendline.

EURUSD: Price hesitation above its falling trendline continues to be seen suggesting how vulnerable EUR is at that level.

The big challenge is for it to hold above its falling trendline and break and close above the 1.4534/19 levels.

If this occurs, further strength will develop towards the 1.4696 level, its Jun 07’2011 high. Further out, the 1.4938 level, its 2011 high comes in as the next upside target.

Its daily RSI is bullish and pointing higher supporting this view. On the downside, the 1.4398 level comes in as the initial support with a loss of there allowing for a run at the 1.4256 level and then the 1.4053 level.

A loss of there will target the 1.3837 level, its July 12’2011 low and subsequently its Mar 06’2011 low at 1.3751.