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GBPUSD's bounce from 1.5829 reaches 1.6456 level only. The subsequent pullback suggests that a cycle top is being formed on daily chart. Deeper decline to test 1.5829 key support is expected next week. A breakdown below this level will confirm the cycle top and indicate that the downtrend from 1.6875 has resumed. Resistance is at 1.6456, only rise above this level could take price back to range trading between 1.5708 and 1.7042.

For long term analysis, GBPUSD has formed a cycle bottom at 1.5708 level on weekly chart. Sideways consolidation in range between 1.5708 and 1.7042 is expected in a couple of weeks and another fall towards 1.4800 is possible.

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EURUSD Weekly Summary
The EURUSD was corrected higher during an active market on Friday but overall the Euro is under pressure this week. However the pair seems to have a strong technical support around 1.4000/30 area. We need a clear break below that area to continue the bearish scenario targeting 1.3750. On the upside, key resistance level is seen around 1.4250 area. As long as price stay below that area, the bearish scenario which started from December 2009 should remains intact. Break above 1.4250 area should be seen as potential threat to the bearish scenario as price may continue the bullish correction further testing the upper line of the bearish channel and 1.4450 resistance area.

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The Euro continues to dive and make new lows this week. The price bottomed out yesterday at 1.4029 and then hanging in a consolidation range until the pair decides to do a critical breakout in either direction.

There are mixed opinions about the future for the Euro/Usd, some experts are saying that the pair will drop going all the way to 1.24 and others are saying that 1.4000 is the bottom of this temporary move. It can be a long and dauntiing task to figure out the fundamentals. What I understand is trending and momentum and right now the Dollar has all the momentum so I will be looking to sell bounces off of key resistance areas. Read the Forex Crunch blog to keep updated on all the news events that impact the market.
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Biggest % gainers: EUR/CAD up 0.65%, EUR/GBP, USD/CAD, EUR/AUD on mild EUR strength and mild CAD weakness. (CAD Retail Sales were weaker.)

Biggest % losers: GBP/JPY down 0.94%, GBP/CHF on GBP weakness. (GBP Retail Sales were weaker.)

Gold $1,089
Oil $75.84

GBP Retail Sales m/m worse at 0.3% vs. 1.3% expected.

CAD Core Retail Sales m/m worse at 0.0% vs. 0.3% expected. Last time was upwardly revised though to 0.3% vs. previous reading of 0.2%.

Sunday night we'll have Australia's PPI q/q readings come out. 0.1% is expected (which was also the previous reading).

Greek bonds sliding again! Not sure how Greek debt got that high that quickly without ...