Technical outlook:
The EUR/USD pair bounced from Fibonacci 0.50 percent resistance around 1.1215 levels yesterday, dropping almost 90 pips before pulling back. If short positions were placed, it is a good strategy to book short-term profits at this moment when EUR/USD is trading at 1.1160 levels. Please note that the pair has either carved out a lower top at 1.1215 levels yesterday, or is expected to print yet another lower top at 1.1230/35 levels going further before reversing lower, as depicted here. A push below 1.1109 levels would confirm a move towards 1.1000 levels first before the pair could resume its rally again. On the flip side, a rally from current levels would indicate a complex corrective structure which could terminate at 1.1230/35 levels.
Trading plan:
Exit shorts and take profits now, and remain flat till further clarifications. Aggressive traders may want to go long with stop at 1.1100 levels, targeting 1.1230 levels.
GBPUSD chart setups:
Technical outlook:
The GBP/USD pair has dropped lower, printing intraday lows at 1.2667 levels. A safe trading strategy would be to book short-term profits on the sell trades with were opened yesterday and look to remain aside for a while. The pair might be looking to unfold as a complex corrective wave structure as depicted above, where each of the waves A-B-C are unfolding as 3-3-3(combination) or 3-3-5 (flat) respectively. It is too early to confirm the above expected wave count but if this holds true, the price would remain above 1.2635 levels going forward and pushing higher towards 1.2840/50 levels before resuming lower again. The immediate support is seen at 1.2635 levels while resistance lies at 1.2970. On the flip side, if the price breaks below 1.2635 levels, it would confirm that further push towards 1.2300 levels is on cards.
Trading plan:
Book profits on shorts taken yesterday and remain flat for now. Aggressive traders may want to go long with stop at 1.2630 levels, targeting 1.2840.
Fundamental outlook:
There is no major event lined up for the rest of the day.
Good luck!
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