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GBPUSD:  Recovery Strength Highlights The 1.6546 Level.

GBPUSD:  With a second week of recovery gains seeing GBP closing higher the past week, further upside gains is expected towards the 1.6546 level, its May 31’2011 high.

On a clearance of this level, additional strength will aim at the 1.6743 level, its 2011 high and then the 1.6900 level, its psycho level. Its weekly RSI is bullish and pointing higher targeting further strength.

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Alternatively, support comes in at the 1.6193 level but the major barrier on further decline stands at the 1.5778 level, its July’2011 low. Further down, support is seen at the 1.5700 level, its psycho level.

All in all, GBP faces bull pressure on corrective recovery started from the 1.5778 level.

EURUSD: Hesitating But Biased To Upside On Corrective Recovery.

EURUSD: Although EUR continues to hesitate on the back of its strong last week strength, its recovery tone set from the 1.3837 level remains valid and intact.

This suggests that its present range trading scenario should eventually fade and   bring further strength towards the 1.4578 level, its July 03’2011 high with a violation of that level allowing for more recovery gains 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.

Conversely, the risk to our analysis will be a return to the 1.3837 level where a decisive break will resume its short term weakness towards its Mar 06’2011 low at 1.3751 and possibly lower.