again with the FED rate cut tomorrow speculation for this pair is very bearish in the short and long term, dollar index is at a huge resistance as well which it never actually managed to surpass, short this pair now and take advantage of a tight stop loss.
buy now, hold until we test that huge weekly resistance, at 1.3400 which should take us to October Brexit negotiation, in which if we leave on a no deal basis sell the pound which will look for complete new bottoms and most likely be the lowest level its been. british economy should get hit hard.
wait for Wednesday so gbp can push down a little further, then buy this pair like there is no tomorrow. simple price action, accumulation and distribution.
This pair is just trapping sellers in at this point and in the next day or two there is still movement for a 100 pip drop, then we will bounce all the way to the upside with FED rate cut at the starting point.
so the most likely GBP scenario is bullish until mid august purely because of the expected FED cut for US, driving DXY to support levels. we still need to however push down to the 1.2000 level, we are way too oversold for GBP so a push up is expected especially with the rate cut as the main driving factor
we should target the1.2800 handle which is also in line...
with the FED rate cut on the horizon, its just not possible for GBP to drop further than 1.2380, the next strong support down is 400 pips to 1.2000, there is a week until the FED decision with a possibility of a new 50 basis point cut, trade small lots and compound when appropriate. TP from current market entry is 1.2600 then possible short term sell off.
last week was a big push down for euro, we would expect a meaningful push from Bulls pending fed rates tomorrow to recover any significant losses made last week, multi TF analysis indicates we are at a previous daily resistance now turned support and buy area is pretty much complete. The likelihood of no fed cut tomorrow would strengthen DXY to the 98.00 strong...
EURUSD sell opportunity as we expect new lows, their is a clear downtrend that is being formed, the daily and weekly timeframes show a Fibonacci level with a 0.5 bearish retracement on the weekly trend line which is the 2nd retest but bulls failed to break the 1.1500 level, the 4H timeframe shows a levelling out of RSI and a wedge breakout on the downside, bearish...
