Technical outlook:
Finally, we present the hourly chart setup for EUR/USD, to take a look at extreme short term targets and wave counts. As seen here, the pair is terminating after potential corrective rally since 1.1728 levels. An immediate bearish turn should push lower towards 1.1700 at least. Please note that potential remains for a test of 1.1600 levels as well, which could complete the first leg lower since the highs at 1.1910 made last week. Please note that EUR/USD is expected to find strong resistance at 1.1830/40 levels since it would be Fibonacci 0.618 (not shown here). In short, a safe trading strategy would be to sell on rallies through 1.1830/40 levels. Furthermore, we are trading in line with the larger picture which is bearish at least for short term. A review shall be made around 1.1300/400 levels to see if the trend is reversing or not.
Trading plan:
Please continue to hold short positions for now, also look to add between 1.1820/40, stop at 1.1930, target 1.1700, 1.1600 for short term (few days).
GBP/USD chart setups:
Technical outlook:
After presenting all the higher timeframes, the hourly setup has been depicted here as discussed last week, to catch the short term setups. As seen here, GBP/USD has completed 3 waves from 1.3260/70 levels since last week (not labeled here for simplification). The pair is drifting sideways for now (potential wave 4 property) and is expected to terminate between 1.3060/75 levels going forward, before resuming its down trend towards 1.2900/30 levels as shown here in Red. Resistance should be strong around 1.3170 levels, while major top seems to have formed around 1.3260/70 levels. On the other hand, support is seen through 1.2900/30 levels as depicted here and that bears should be looking to push through that before producing any meaningful retracement or rally. Ideally, GBP/USD should reverse from 1.3070 levels, but it could test higher levels through 1.3150/60 as well before resuming lower.
Trading plan:
Please continue holding short positions from last week and look to add through 1.3060/75 rally, stop at 1.3270, target 1.2900 as short term.
Fundamental outlook:
No major events lined up today as well.
Good luck!