On the whole, although the pair continues to hold near its recent highs (0.7171), history of its price action and its topping out momentum indicators remain suggestive of risk of consolidation to pullbacks in the short term while maintaining its medium term outlook.

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Although we have a bearish implication in terms of breakout direction, it sometimes resolves to the upside which is typical in EURGBP’s case.

USD/CAD has continued to maintain its corrective/consolidative mode with upside bias having recovered off its 1.0338 low registered in late July’07.The correction took the pair to as high as 1.0865 in Aug 16’07 before a new wave of selling pushed it to a low of 1.0530 on Aug 20’07.

EURGBP continues to trade within its established falling channel rising off the channel base at 0.6678 the past week but failing to test the channel top at 0.6776 before putting in a two-day of downside weakness on Wednesday. The said pattern now keeps the short term focus to the downside.

With momentum and price action pointing higher, USDJPY should continue to put pressure on the upside for further gains.

USDCAD registered a second week of upside gains on Friday following its recent break above its rising channel established since Sept’06.