Technical outlook:
The EUR/USD pair is finally completing its corrective rally that began in January 2017 from 1.0350 levels. Please note that the pair has rallied during the past 4 months and has finally hit a major resistance around 1.0950 levels on Monday and today. It looks like a bearish reversal is underway, though it is still possible that EUR/USD will hit one more small high before reversing lower again. Importantly, an engulfing bearish candlestick pattern is developing here. Look to sell on rallies or at the current price. The major resistance is seen at 1.13 levels while support comes in at 1.0820 levels. A bearish reversal should have major impact on EUR/USD with the target towards 1.0350 and lower.
Trading plan:
Remain short for now, with stop placed above 1.1000, targeting lower.
GBP/USD chart setups:
Technical outlook:
As discussed earlier, the GBP/USD pair is expected to hit one more high above 1.2900/05 levels before reversing again. The pair is seen to be trading at 1.2834 levels for now, looking to push higher one last time before resuming its long term bearish trend. As labelled on 4H chart view here, the rally from 1.2375 levels is still in 4 waves and a push higher would complete the wave structure as well. Immediate support is seen at 1.2750 levels while interim resistance is at 1.2900/05 levels. Looking to sell above 1.2900 level should be a favored trading strategy. On the flip side, a break below 1.2750 would warrant bearish reversal.
Trading plan:
Remain flat for now and look to sell above 1.2900 levels.
Fundamental outlook:
Today's economic calendar is light, so please watch out for some geopolitical news about the US and North Korea.
Good luck!
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