Followed by a doji in the hourly candle the GBP/USD sprung up 80 pips but was unable to break past the upper trend line. A similar set up can be seen today, as the Pound Dollar rises after a hourly reversal this may also be limited by the upper trend line.
We are looking for a break out of this resistance and eventually move towards 1.4466 first and 1.4496. Dojis continues to form on the middle support (aqua) and this is area that we should be trading.
EUR/USD is still stuck inside the wedge and is kicked off again. But for how long? We can only hope that there might be some fundamental fire in the market that can attract more buyers, this could mean that this week and the next week U.S. data flow can create this impact.
In the mean while, we will continue to trade on the sidelines but if EUR/USD reaches the lower wedge or 1.0847 then we will immediately go long with a tight stop loss, cause if the break out turns lower then we may be quickly burnt and it is necessary to move with a tight cut.
For more daily market insights, visit NoaFX Knowledge Center.