GBP/USD has a long term trendline located at 1.5068. This trendline should be enough to hold the market this session and to push it lower to 1.4986 minimum target. If we fail to hold over 1.4986 look for sellers to drive this even lower with 1.4865 then the short term objective.

On these lower levels sellers are advised to cover all shorts. Buyers are expected here, but they will be slightly nervous and will leap from long if we lose 1.4960. If this occurs look for the market to come lower for 1.4829 initially, with potential for 1.4829. Now as stated this resistance trendline located at 1.5069 should be enough to hold the topside. If it fails and we break 1.5088we should see fresh buying coming into the market with 1.5149/55 then targeted.

EUR/USD have fallen from 1.2398 and have hit the first retrace target of 1.2351. We are still looking to be a little overbought on the short term charts, so we are looking for further short term weakness early in the session. Below 1.2345 is your first clue that weakness will follow with 1.2297 to 1.2280 the short term objective.

Here buyers are expected to come into the market, but again they will not hold if below 1.2280. 1.2240/35 would then be the targeted area. Now we do have this resistance band in the 1.2398/1.2410 area and we only really want to go long if above 1,2425. If this occurs and we break above 1.2425 we should have the impetus to trade higher with 1.2483/85 the short term objective.

Eur/Gbp closed lower on Friday thus keeping the market depressed for the early part of this session. We are below 8250 and this suggests that another assault on the downside is imminent. If we can hold below 8250 then expect drop to 8202/01 region. Sellers would be advised to initially cover shorts to here. If we break 8200 sellers are expected then to come back into the market looking for further weakness leading to 8180 first then 8165. Now if we can claw back above 8250 look for this to come back towards the 8300 resistance. Sellers once more will be waiting at these higher levels and will only reverse if 8310 is broken.