Trading Plan for EUR/USD and GBP/USD for August 04, 2017

Technical outlook:

The EUR/USD pair is seen to be consolidating at this moment after printing highs at 1.1910 levels yesterday. The pair seems to have made a meaningful top or might just push one last time higher before reversing lower. Please recall in line with the bigger picture presented here on August 02, 2017, the pair should resume lower any moment. A stop has been triggered yesterday but please look to sell again on intraday rallies through highs or current levels as well (1.1880). A larger trend is just about to resume and today might be the beginning of that much-awaited reversal. Immediate price resistance is seen at 1.1910 levels while support is around 1.1600 levels respective on the daily chart presented here. As discussed earlier, we shall be presenting short term trade setups in line with the bigger picture going forward.

Trading plan:

Please sell again now at 1.1870/80 levels, stop above 1.1945, target 1.1600. This is a short term trade setup and could last for a few days. Long term is towards parity.

GBP/USD chart setups:

Technical outlook:

We had presented a long term scenario (weekly chart view) on August 02, 2017 for GBP/USD, discussing a potential bearish reversal and resumption of its long term bearish scenario. The pair, in line with the discussions, dropped sharply yesterday, producing an evening star candle stick bearish pattern. This could be the first required step towards its major reversal through 1.2000 and lower levels. Please note that an A-B-C corrective rally has probably come to an end around 1.3267 levels yesterday, before reversing sharply. Please also note that prices are at a short term trend line support for now, and a break lower would be required to confirm a bearish resumption. Even further, the immediate price support is seen at 1.2900/30 levels, and a break lower would confirm the first leg down for next larger bearish move. Each day from now, we shall present a short term trade setup in GBPUSD, in line with the larger view.

Trading plan:

Please remain short, stop at 1.3285, the target is 1.2900 levels. This is extremely short term trade setup while a long term target is below 1.2000 levels.

Fundamental Outlook:

Please watch out for USD NFP numbers to be out at 0830 AM EST today for a volatility trigger. It is also joined with CAD unemployment rate at the same time.

Good luck!

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

Source:: Trading Plan for EUR/USD and GBP/USD for August 04, 2017