Technical outlook:

The EUR/USD pair seems to be stalling just below 1.1200 levels for now, having produced a tight consolidation range. Looking into the wave structure, the pair might be wanting to hit 1.1300 resistance before pulling back in a meaningful manner. At the same time, the overall bearish trend (bigger picture) still remains intact at least for now. The recent rally from 1.0800 through 1.1263 levels suggest that prices should retrace towards 1.1000 levels as depicted here on the Daily chart, before producing further rallies. High probability trade setup is to sell on rallies till prices remain below 1.1263 levels going forward. Immediate resistance remains at 1.1268 levels, while support is seen at 1.0800 levels on the daily chart view. On an intraday basis, please expect one more low towards 1.1150/55 levels before pulling back again.

Trading plan:

Sell on rallies towards 1.1230/40 levels, stop above 1.1268, targeting 1.1000

GBP/USD chart setups:

Technical outlook:

The GBP/USD pair has reacted well around the 1.0340/50 levels last week as anticipated. With our first short-term profits taken last week, the trading plan remains fairly similar to what was discussed earlier. The GBP/USD pair has broken past 1.2800 levels and is pulling back right now only to drop back again lower. Please note that the pair is unfolding its first 5 waves lower at a lower degree and that intraday pullbacks would provide us the opportunity to sell again. At this moment, the pair is trading at 1.2834 levels and is looking to have completed wave iv at a lower degree. If this wave count holds true, the pair should be heading lower again into wave v before correcting itself. We shall keep track of the counts at lower degrees and update here to enter next short side.

Trading plan:

Please take all intraday rallies as opportunity to sell again towards lower lows 1.2300 and 1.2000 in the weeks to come.

Fundamental outlook:

With US markets closed for Memorial Day, there are no major fundamental events out today.

Good luck!