Technical outlook:

The EUR/USD pair is still drifting sideways leaving traders confused about the immediate trade direction. Believe it or not, in spite of the fact that the pair has broken above the resistance trend line as shown here, we need to see a bullish reversal signal around 1.1140/50 levels to confirm that the short-term trading bias is bullish. Consolidations are mostly tricky to handle and this one seem to be extending a lot. At least for now it can be confirmed that till prices remain above 1.1109 levels, the near-term outlook remains bullish for EUR/USD and that we would be looking to buy on dips till then. On the flip side though, a break below 1.1109 would trigger drop towards 1.1000 levels before prices reverse. We shall review situation again in that case and decide on a further course of action.

Trading plan:

Please remain flat for now and look to buy on bullish reversal around 1.1140/50 levels, stop below 1.1109 target higher.

GBPUSD chart setups:

Technical outlook:

GBP/USD rallied sharply after we discussed and submitted the plan yesterday. The pair looks to have formed the first wave within the corrective wave C (not labelled here). Ideally, the pair should unfold into 5 waves from here and looking to push at least towards 1.2850 levels, which is also fibonacci 0.618 resistance of the entire drop between 1.2970 through 1.2635 levels respectively. Please note that the short-term bias looks constructive for bulls but it is within the complex corrective rally, and bears should come back strong at higher levels. Interim support is now seen at 1.2587 levels and till prices remain above these, one can look for a push higher through 1.2850 at least. On the flip side, a continued drop below 1.2587 levels would confirm further lows.

Trading plan:

Remain long, risk below 1.2590, target 1.2830/50

Fundamental outlook:

No major events are lined up for the day.

Good luck!