EUR/USD:
Update: The weekly direction has reversed to long, and I advise staying out until next week.
GBP/USD:
Weekly Trend direction: Bullish
Weekly trend reversal level: 1.6240
Key G7 support levels: 1.6620, 1.6550, 1.6480
Counter-trend opportunities:
Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal
Today's trade suggestion:
A fantastic bounce from the floor last week means that the pound remains bullish for the 5th week in a row, and we are currently testing the crucial 1.6720 weekly resistance level and 78.6% Fibonacci (see the numerous
touches over the past few months.) Traders could look for signs of reversal here, with the possibility of a countertrend short trade, or simply be patient and wait for dips to the support levels well below – starting at 1.6550. Target for shorts would be 1.6550 and target for longs back to the 1.6720 resistance level. A close above 1.6720 almost certainly means a move back to the August high around 1.7000 for another bash at moving higher.
Update: We have had a sharp move higher and remain in the long direction. Continue to buy dips, with supports at the levels above.
Summary:
Buy dips to supports after a clear reversal has formed. Target 1.6720.
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