EUR/USD

Update: Moving down close to 1.2840 – the 38% retracement level – but no real signs of reversal just yet. We’ll allow for a further dip to the support levels listed above, which will take us down to the raft of technical supports below us. Be patient!

Summary: Buy dips to support levels listed above after a clear G7 entry signal, allowing for a retracement as far
as 1.2660-1.2700. First target 1.3000 and then 1.3120.

GBP/USD
Weekly Trend direction: Bullish
Weekly trend reversal level: 1.4950
Key G7 support levels: 1.5270, 1.5200/20, 1.5150, 1.5050
Counter-trend opportunities:

Strategy: above the weekly trend reversal level buy dips to support levels after an entry signal

Today’s trade suggestion:
In sync with the other currencies as they strengthen vs. the US dollar. The pound has rallied sharply to a new recent high at 1.5472, and is probably due for a correction or consolidation. We have already retraced to the 38.2% Fibonacci level at 1.5270, but we’ll allow for a little more pullback to the next support level at 1.5200/20 provided by a raft of support at the 50% retracement level, previous high and the 200 period moving averages. Look to buy into dips to 1.5200/20, or perhaps even 1.5150 if the dollar gains a little support in the early part of this week. Wait for a clear G7 reversal signal, remembering the PAPA principle! Targets for long trades are 1.5400and then 1.5450.

Update: Pretty much on cue, with a good profit yesterday resulting from the bounce from 1.5200. Another chance to buy was seen at 1.5150 during the Asian session, and once again the pound has delivered. As we have
seen plenty of action over the past 24 hours, it’s probably best to give the pound a break and focus on the other
pairs today.

Summary:
Buy dips to support levels after a clear G7 signal. Targets 1.5400 and then 1.5450. Staying out of this pair today.