Technical outlook:
The EUR/USD pair continued to flirt with 1.1280 levels until today before reversing lower again. Please note that the pair has tested recent highs three times and failed to get through fresh highs, which might be an indication of exhaustion and that a meaningful retracement should be expected lower. Looking at the wave count, EUR/USD might have completed wave 3 at a higher degree and should be looking to terminate into wave 4, producing an expanded flat. If the above wave count holds true, we should see the pair unfolding lower into 5 sub waves and pushing through 1.1100 levels a least. Please note that the Fibonacci 0.382 support is also falling around the same price (1.1000) as discussed in earlier sessions. A push below 1.1200 levels would confirm the down trend and accelerate lower.
Trading plan:
Please remain short with stop placed just above 1.1290 levels, targeting 1.11.
GBPUSD chart setup:
Technical outlook:
The GBP/USD pair is looking to be poised to drop lower. The prices should remain below 1.3047 levels going forward. Please note that the pair is already at the Fibonacci 0.618 resistance of its earlier drop between 1.3047 through 1.2767 levels as depicted here. Furthermore, it is producing an engulfing bearish candlestick pattern at the moment which is indicating that bears are just about to regain control back here. Looking into the wave structure, the pair has produces waves (1) and (2) at a larger degree looking to unfold into 5 waves lower from here. Immediate resistance is seen at 1.3047 levels while interim support lies at 1.2767 levels.
Trading plan:
Please remain short now, stop above 1.3047 with target at 1.2600 levels at least.
Fundamental outlook:
Big day to watch out for ECB Central Bank Rate Decision to be out in a few minutes and UK General Election Day.
Good luck!
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