diff --git a/README.md b/README.md
index 2c646cb..238dd20 100644
--- a/README.md
+++ b/README.md
@@ -314,7 +314,7 @@ curl http://localhost:8080/health
 
 ---
 
-### **Phase 1: Enhanced Validation & Categorization (IN PROGRESS 🔄)**
+### **Phase 1: Enhanced Validation & Categorization (COMPLETED ✅)**
 
 #### 1.1 Smart Resource Detection
 - [x] **Enhanced Validation Engine**
@@ -329,7 +329,7 @@ curl http://localhost:8080/health
   - **Recommendations**: Clear guidance on how to fix each issue
 
 #### 1.2 Historical Analysis Integration
-- [ ] **Smart Historical Analysis**
+- [x] **Smart Historical Analysis**
   - Use historical data to suggest realistic requests/limits
   - Calculate P95/P99 percentiles for recommendations
   - Identify seasonal patterns and trends