Trading plan for EUR/USD and GBP/USD for August 24, 2017

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Technical outlook:

The sideways story for EURUSD continues as it is, but it can be predicted with more probability now that the pair is looking to have already topped out at 1.1830 levels or maybe push higher one last time through 1.1840/50 levels. Looking into the wave structure, a complex correction is taking shape as discussed earlier into an A-B-C and looks like waves (A) and (B) have already taken shape. Furthermore, waves 1 and 2 within wave (C) are also ready as labelled here. Till prices remain below 1.1830 levels, the above wave count should hold true. On the flip side though, a push through 1.1830 levels should test 1.1850/60 levels before reversing lower again. Traders are suggested to remain patient and look to sell on rallies going forward. Resistance should be strong at 1.1840/50 levels, while support lies at 1.1740 levels.

Trading plan:

Please remain short and look to add further at 1.1840/50 levels, stop at 1.1915, target 1.1600 and lower.

GBP/USD chart setups:

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Technical outlook:

GBP/USD finally bottoms out as we have been waiting since last several trading sessions. Today's intraday lows at 1.2773 looks to have finally bottomed out and a follow through rally over 1.2835 levels, confirms the same. Please take the current dip to 1.2810/15 levels as yet another opportunity to go long. Looking into the wave structure again, the pair has dropped 5 waves since 1.3267 levels producing wave (1) within the expected (5) waves drop. Today's bottom if holds true, would trigger a much awaited counter trend rally towards 1.3000 and 1.3075 levels as depicted here. Also notice that a push beyond the trendline resistance would accelerate the proposed rally. Immediate resistance is seen at 1.2925/30 levels while support should be around 1.2770 levels respectively.

Trading plan:

Please remain on the long side, stop below 1.2770, target 1.2930, 1.3000 and 1.3075.

Fundamental outlook:

Please watch out for a huge fundamental trigger coming out tomorrow with Jackson Hole speeches by Ms Yellen and Mr Draghi.

Good luck!

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