Technical outlook:
The EURUSD pair has rallied upto fibonacci 0.50% of the entire drop from 1.0906 through 1.0569 levels till now. Please also note that it is also converging with the back side of the support turned resistance trend line as depicted here on the 4H chart view. The wave structure reveals that the initial drop and subsequent rally can be termed as waves 1 and 2 respectively. Kindly note that a rally through 1.0770/80 levels is also possible before the pair turns lower again towards its major trend that is downward. It is just a matter of time that a lower top is carved out in the above instrument and the downtrend resumes. Immediate resistance is seen at 1.0906, while support is at 1.0500 respectively.
Trading plan:
Please remain short for now, stop at 1.0950, targeting 1.0350 and lower levels.
GBP/USD chart setups:
Technical outlook:
The GBP/USD pair took stops out at 1.2710 levels yesterday and printed fresh highs at 1.2905 levels as seen here. The bearish structure still remains intact with the corrective/consolidation phase looking to be into its last legs. Please note that the pair is seen to be testing fibonacci 0.618 resistance of the entire drop from 1.3400 through 1.1950 levels as presented on the 4H time frame here. Please note that according to the wave structure, either a top has been already formed or it is expected to print another high towards 1.3100 levels before reversing lower again. Selling on rallies still remains a favored trading strategy but please remain flat for now and allow for a potential top before entering again.
Trading plan:
Please remain flat for now, looking to sell again around 1.3000 levels.
Fundamental outlook:
As for GBP/USD, the UK snap elections declared yesterday, proved to be the trigger for a rally but it should be short-lived. No major fundamental news are expected to be released for the rest of the session.
Good luck!
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