EUR/USD continues to trade within the price channel, while GBP/USD saw gains, thanks to the stronger-than-expected GDP data from the UK. The figure returned some optimism to buyers as they hope that the Bank of England will be able to manage the recession that many expect to come by the end of the year. In the afternoon, markets will focus on the report on the US labor market, which may prompt a fall in both euro and pound. But if the data fail to meet expectations, the two may see stronger upward corrections later in the week.
EUR/USD
For long positions:
Buy euro when the quote reaches 1.0604 (green line on the chart) and take profit at the price of 1.0645.
Euro can also be bought at 1.0575, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0604 and 1.0645.
For short positions:
Sell euro when the quote reaches 1.0575 (red line on the chart) and take profit at the price of 1.0539.
Euro can also be sold at 1.0604, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0575 and 1.0539.
GBP/USD
For long positions:
Buy pound when the quote reaches 1.2008 (green line on the chart) and take profit at the price of 1.2008 (thicker green line on the chart).
Pound can also be bought at 1.1969, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2008 and 1.2059.
For short positions:
Sell pound when the quote reaches 1.1969 (red line on the chart) and take profit at the price of 1.1921.
Pound can also be sold at 1.2008, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1969 and 1.1921
