Technical outlook:
EUR/USD continues to drift sideways and it is turning out to be a typical wave 4 correction which takes time to unfold, a general guideline of alteration. If short were initiated at a higher level, partial or full profit can be taken because the pair might be looking to push higher through 1.1840/50 levels and terminate into a wave B before collapsing lower again. As an alternate thought, EUR/USD may be unfolding into a triangle and take much longer time to terminate wave B, before again dropping lower into wave C towards 1.1550 and 1.1400 levels as discussed earlier. The bigger picture presented in the beginning of August still remains intact but the sideways scenario is taking much time. Broadly, till prices remain below 1.1915 levels, bears should remain in control. Immediate resistance is seen around 1.1840/50 levels, while support is at 1.1650 levels respectively.
Trading plan:
Please book partial profits on shorts taken earlier and also add on rallies through 1.1840/50 levels, stop at 1.1920, target 1.1600 and lower.
GBPUSD chart setups:
Technical outlook:
The GBPUSD wave counts are more clear now. If you would have read yesterday's article, the last low was discussed as a possibility at 1.2800/10 levels. Maybe GBPUSD has carved an interim low today at 1.2810 levels before pulling back. Looking into the wave counts now, an impulse drop seems to be complete today and the most probable wave should be looking to push higher towards 1.2930 and 1.3000/1.3100 levels as depicted here. The much-awaited counter trend rally is expected to resume anytime now and aggressive traders would want to take benefit of that. Please note that immediate resistance is seen at 1.2930 levels and that support is seen at today's intraday low at 1.2810 levels respectively. The wave structure, as well as bullish divergences seen on 4H charts, are telling a clear story of a probable counter trend scenario in the making.
Trading plan:
Please remain long now (aggressive), with a stop below today's lows, target 1.2930 and 1.3050.
Fundamental outlook:
No major events lined up for the remaining of the day.
Good luck!
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