28.08.201715:49 Forex Analysis & Reviews: Trading Plan for EUR/USD and GBP/USD for August 28, 2017

Long-term review

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Technical outlook:

The EUR/USD made short calls yet again last Friday. The pair has opted for the least probable wave count of producing an expanded flat movement as seen here. Maybe, the pair is looking to make one more high above 1.2951 levels before giving into bears again. Structurally, EUR/USD still looks to be in the wave 4 correction and is expected to drop to 1.1500 and lower before deciding on further action. Though it seems one should be aggressive for now, remaining short or preparing to go short again. Interim resistance is at 1.2950 levels, while support is seen at 1.1770 levels. If this count fails, an alternative could be a continued rally higher to complete 5 waves that began on January 2017, which looks unlikely for now.

Trading plan:

Aggressive traders might want to go short again with a stop above 1.1951 and the target is open. Conservative traders would want to wait for a new high just in case.

GBP/USD chart setups:

Technical outlook:

The GBPUSD did rally on Friday as discussed earlier but unfortunately we got out earlier. Nevertheless the pair is now turning to be a good case to sell on rallies. As depicted here, GBPUSD is expected to terminate wave 2 anytime soon, to proceed lower into wave 3 and further. The wave structure reveals that GBPUSD has finished wave 1, that unfolded into 5 waves from 1.3267 through 1.2770 levels last week. At present it is unfolding into wave 2, which is expected to terminate into 1.2960 or 1.3075 levels going forward. Initial resistance is now seen at 1.3050 levels, while interim support is through 1.2770 levels respectively. Bears are expected to remain overall under control till prices remain broadly below 1.3267 levels.

Trading plan:

Selling partially at 1.2950/60 and remaining at 1.3075 with stop above 1.3270 levels is a good plan here.

Fundamental outlook:

There are no major events lined up for the rest of the day.

Good luck!

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