The GBP flash crash last week has left our GBP algorithm somewhat in no mans land whilst we wait for levels to adjust following deep oversold conditions on all GBP pairs (overbought on EUR/GBP obviously).
With Monday being a Bank Holiday in Japan, the US and Canada , we don't expect much action today so the next big event will be Tuesday's German ZEW Economic Statement which could set EUR's direction for a number of trading sessions.
The picture on EUR/USD becoming ever more clouded with price held in a tightening and a 500 pip channel.
The top of this coincides with strong resistance so we expect the EUR/USD to decline from 1.1255 area should we hit it this week.
So our T.O.T.W. is SHORT EUR/USD from 1.1255 with a STOP above the channel at 1.1270 for a 25 pip risk.