EUR/USD – 4H.
As seen on the 4-hour chart, the EUR/USD pair made a new sharp reversal in favor of the euro on Friday, which was caused by unsatisfactory reports from America on NonFarm Payrolls and the level of wages. Wages in May rose by 3.1% compared to the same period in 2018, although traders expected an increase of 3.2%. The number of new jobs outside the agricultural sector was only 75,000 with much higher expectations of the Forex market. Thus, the euro resumed the growth process and closed above the Fibo level of 61.8% (1.1318). Today, the pair started the expected rollback and closed below the correction level of 61.8%. Thus, on June 10, the process of falling quotations can be continued in the direction of Fibo levels of 50.0% (1.1277) and 38.2% (1.1239). Traders do not expect economic news from the European Union today. America's economic calendar is also empty today. Nothing should prevent the EUR/USD pair from rolling back down. Today, the divergence is not observed in any indicator.
The Fibo grid is built on extremums from March 20, 2019, and May 23, 2019
Forecast for EUR/USD and trading recommendations:
The EUR/USD pair closed below the correction level of 61.8%. Thus, I recommend selling the euro today with the targets at 1.1277 and 1.1239, a protective order above the Fibo level of 61.8%. I recommend buying the EUR/USD pair after closing the quotes above the level of 61.8% for the purpose of a correction level of 1.1368 and a stop-loss order under 1.1318.
GBP/USD – 4H.
The GBP/USD pair, after the formation of a bearish divergence at the MACD indicator, performed a new turn in favor of the US currency and began a sluggish rollback in the direction of the correction level of 76.4% (1.2661). Traders are still not eager to buy the British pound, as there is no clarity with the results of Brexit. Moreover, the first stage of the election of the new leader of the Conservative party and the Prime Minister of the country will begin in the coming days. The most likely candidate for this position, Boris Johnson, gives an interview as if he had already won the election, and tells voters the details of his plan to exit the European Union. According to Boris Johnson, as in the opinion of Donald Trump, who strongly supports Johnson, to pay about $50 billion for withdrawal from the European Union is not necessary in the current version of the agreement on an orderly exit. That is, Johnson wants to implement a way out or a tough scenario, or to revise the existing agreement with Brussels. This option implies new negotiations, which, as everyone understands, will take at least a few more months. Naturally, traders are well aware of the situation and hope for a speedy resolution of this issue. And it is on this basis that they do not hurry to buy the pound sterling.
The Fibo grid is built on the extremes of January 3, 2019, and March 13, 2019.
GBP/USD – 1H.
As seen on the hourly chart, the GBP/USD pair performed a fall towards the correctional level of 161.8% (1.2673) after the formation of the bearish divergence at the CCI indicator. Today, June 10, a bullish divergence is brewing in the CCI indicator, the formation of which can allow the pound/dollar pair to perform a reversal in favor of the English currency and resume growth in the direction of the correction level of 127.2% (1.2780). However, as we have already found out, the buyers of the pound are now taking a cautious position and do not count on a strong growth of the pound. Closing the pair's rate under the Fibo level of 161.8% will significantly increase the chances of falling in the direction of the correction level of 200.0% (1.2554).
The Fibo grid is built on the extremes of April 25, 2019, and May 3, 2019.
Forecast for GBP/USD and trading recommendations:
The GBP/USD pair started falling. I recommend buying the pair with the target of 1.2780, with the stop-loss level below 1.2673, if the rebound from the level of 161.8% is executed, especially in conjunction with the bullish divergence. I recommend selling the pair at the close of quotations under the Fibo level of 161.8% (hourly chart) with a target of 1.2554 and a protective order above the level of 1.2673.