Technical outlook:

The story in EURUSD continues to be bearish as we have been trading the entire last week. The pair has just remained shy of hitting fresh lows today and hence we are presenting an alternate scenario on the short-term hourly chart. The entire drop from 1.1910 levels through 1.1687 levels is labelled as wave (1), which is an impulse. The rally hence forth could be wave (2) or it could be taking a more complex shape and wave (2) can go and hit higher as labelled here. That would complete a complex corrective wave structure A-B-C and also terminate wave (2). Keeping this view in mind it is recommended to exit short positions now and remain watchful, counter trend rallies might be taking shape as complex structures here. The immediate support is seen at 1.1687 levels, while the resistance lies at 1.1770/80 levels.

Trading plan:

Please exit full or partial short positions taken last week. Again look to go short at higher levels.

GBP/USD chart setups:

Technical outlook:

The GBP/USD pair is still lagging behind EUR/USD and has not produced a counter trend rally till now. It is seen to be trading at 1.2860 levels at this moment and is expected to resume the counter trend at any moment. As depicted on the short-term chart here, the wave counts are more prominently suggesting that an impulse drop is complete with 5 waves, labelled as wave (1) here. A probability remains for a counter trend pullback rally towards 1.3050 and 1.3100 levels respectively. Lets us be watchful now, and wait for the much awaited counter trend move. The support is strong near 1.2800 levels while the immediate resistance is offered through 1.3050/60 levels as depicted here. The long-term picture presented at the beginning of August, still remains intact and a huge wave lower is expected after the counter trend is over.

Trading plan:

Please remain flat for now and prepare to sell on rallies.

Fundamental outlook:

No major events are lined up for the remaining hours today.

Good luck!