FX.co ★ Trading Plan for EUR/USD and GBP/USD for May 26, 2017

Technical outlook:

The EUR/USD pair continues to consolidate after printing highs at 1.1263 levels earlier. The pair should be poised to drop today during New York Session towards a short-term trend line support as depicted here. The price coordinates expected are 1.1000 levels where support is sould be set. A bullish reversal there could push prices again higher towards 1.15/16 levels. On the flip side, a break below the support trend line would warrant a continued bearish view. Looking into wave counts and the bigger picture, the pair is still producing its counter trend correction that began in early 2017 and the correction is expected to end around 1.15 levels unless a different outcome is seen in the coming days. Immediate resistance is seen at recent highs at 1.1263 levels, while support is strong at 1.0850 levels respectively.

Trading plan:

Please remain short for now with stop above 1.1263, targeting at least 1.1000 levels.

GBP/USD chart setups:

Technical outlook:

A bearish reversal scenario of GBP/USD is looking good now. It has paid off to remain just short in recent days and maybe a meaningful top is already in place at 1.3047 levels. The pair has broken below its consolidation range and is seen to be trading comfortable below 1.2900 levels. The long-term story remain intact for a potential bearish resumption towards 1.2000 levels and lower. According to the wave counts as well, prices should now unfold into 5 waves lower from here till 1.3047 levels hold good. As an alternate count though, if prices do not break below 1.2800 levels, there remains a possibility of yet another high before reversing lower towards its long-term bearish trend. Immediate support is seen at 1.2800 levels while resistance is seen at 1.3047 levels,

Trading plan:

Please book profits on short positions taken earlier.

Fundamental outlook:

Please watch out for US GDP figures today at 08:30 AM EST today and expect price volatility.

Good luck!