Trading Plan for EUR/USD and GBP/USD for August 07, 2017

Technical outlook:

Initially weekly, then daily and now we are presenting the 4H chart view for intermediary trade setups in EUR/USD. The pair has produced a much awaited bearish reversal now and is still looking to continue dropping lower. As seen here, the short term story reveals a break below trend line support and that prices could further drift towards the intermediary trend line support which is passing through 1.1400/1500 levels for now. Please note that immediate Fibonacci extensions are pointing towards 1.1700 levels at least. First major support is seen through 1.1600 levels, while resistance should be strong at 1.1910 levels respectively. In line with the long term picture, the short term story remains bearish and selling on rallies remains a favorable trading strategy.

Trading plan:

Please remain short from last week, stop at 1.1940, targeting at least 1.1800 and 1.1600. Please book partial profits at 1.1700 levels.

GBP/USD chart setups:

Technical outlook:

In line with the long term story discussed last week, the medium term story remains intact for now. The pair has pushed 3 waves lower and is still looking to push through 1.2900 and 1.2800 levels respectively before producing a meaningful retracement higher. Furthermore, an intermediary trend line has been broken which supports bearish view going forward. The wave trajectory is expected to push through 1.2900 levels before producing a counter trend rally. Please note that it remains high probability that GBPUSD has resumed its larger term bearish trend and hence a series of lower lows and lower highs is possible going forward. The pair is expected to produce 5 waves lower at a higher degree, which could drag prices lower through 1.1900 levels at least. Immediate Fibonacci support is seen at 1.2900 levels for now while price resistance should be strong at 1.3267 levels respectively.

Trading plan:

Continue holding short positions from last week, stop at 1,3280 targeting 1.2900, 1.2800 levels at least. Please book partial profits around 1.2900 levels.

Fundamental outlook:

Today’s event book remains almost empty, with no major market movers as those on Friday last.

Good luck!

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

Source:: Trading Plan for EUR/USD and GBP/USD for August 07, 2017