Trading plan for EUR/USD and GBP/USD for August 21, 2017

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Technical outlook:

A short-term view has been depicted here for EUR/USD, with the most probable wave counts. The pair might be looking to produce a wave 4 corrective structure (zigzag) labelled as A-B till now. Wave C might be looking to push lower towards 1.1550 levels at least. Also please note that a resistance trend line is also passing very close to the current price action and pushes prices lower again. Furthermore, be prepared for a more complex correction in wave 4, since the second wave was pretty sharp (not seen here). We shall present alternate scenarios of wave counts as it unfolds here. For now, the resistance should be strong around 1.1850 levels, while the interim support is seen at 1.1650. A simple trade strategy could still be to sell on rallies through 1.1850 levels. Broadly speaking, bears should remain in control till prices stay below 1.1900 levels going forward.

Trading plan:

Please remain short and add more around 1.1840/50, stop at 1.1920, target 1.1600 and lower.

GBP/USD chart setups:

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Technical outlook:

The GBP/USD pair and chart setups are still looking sideways, with possibilities of yet another lows at 1.2800 levels before producing the much awaited counter trend rally as depicted here. We would like to present the current sideways movement and declare a no-trading zone for now unless prices spike lower towards 1.2800 levels producing a long opportunity. On the flip side, if 5 wave is already complete, as an alternate, a counter trend rally could come into play from current levels and push through 1.3100 levels as depicted here. Please note that 1.3100 level is the Fibonacci 0.618 resistance for the entire drop from 1.3270 through 1.2850 levels respectively. For now, the immediate resistance should be seen at 1.3000 levels while the interim support is found around 1.2850 levels.

Trading plan:

Please remain flat for now. Shall be looking to sell higher around 1.3000 and 1.3100 levels respectively.

Fundamental outlook:

No major event lined up for the day.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com