Although this region does boast a nice collection of merging structures, we feel this area may be only good for a short-term bounce. The reason being is weekly action shows little support in the market stopping price from reaching a long-term weekly coming in at 1.0819. Furthermore, down on the , apart from the referendum low seen at 1.0911, there’s also little support stopping price from connecting with the aforementioned weekly .
Our suggestions: Watch for a bounce from the 1.0940/1.0950 H4 zone today. Whether one waits for lower timeframe confirmation or simply enters at market is of course down to the individual trader. In regard to targets, the most we see this pair bouncing to from here is 1.10, maybe at a stretch to the H4 supply at 1.1040-1.1028.