Weekly Analysis of a currency pair I watch:
This is a monthly chart and the strong reversal we have seen this monthly could spell a slightly longer period of bearishness in GBPUS$.
The 1.3330/90 area is critical this week which represents a 38.2% retracement of the move up from the Brexit lows (the range is because of the different platforms and the lows that were registered). Mine is at 1.3336 but others have 1.3390 area.
A deeper dive into the weekly timeframe is showing the move higher from the 1.1650 lows as the first impulse higher in what could eventually see GBPUS$ trade back to the 1.5000 area. But think we will experience a 3 wave corrective structure that started at the 1.4375 high.
For now I would watch 1.3390/1.3500 with bigger resistance in the 1.3600/1.3800, I do favour a deeper retracement of the 1.4375-1.3390 move before a final attempt at possibly 1.3150 area.
Support: 1.3390, 1.3330, 1.3150, 1.3040 and 1.2790
Resistance: 1.3500, 1.3600, 1.3800, 1.4020 and 1.4375
The Euro like GBP is currently correcting the first impulse higher (1.0335-1.2550) we today tested a very important area at 1.1710 which I would look to hold for this week for deeper corrections into the 1.1860/1.1950 area. There are bigger resistance areas behind at 1.2020/50.
This current corrective move from the 1.2550 highs can see the Euro trade down in a 3 wave structure to 1.1550 area.
Support: 1.1710, 1.1550 and 1.1200
Resistance: 1.1850, 1.1995 and 1.2050