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What August can bring us?

 

It looks like the worst on the market is behind us. Period of two months longconsolidation is over and market seems to be moving again.

Today pund is losing ground. If market closes below 1.63 we can expect further loses. Test of 1.60 is very possible. RSI indicator is in well established down trend. Situation looks dangerous for GBP. All what is needed to make negative scenario real is a situation when market is closed below 1.63.

Since we talk about pound we should mention about EUR/GBP market. Euro looks here as a stronger currency. If market closes above 0.87 further gains are possible. Both RSI and MACD indicators formed positive divergence. Target area for this market is below 0.90 level. Close below 0.85 could mean that positive scenario will come to an end.

After rising above 1.55 level EUR/CAD market is moving higher. At 1.60 upper line of falling wedge pattern runs and this is the place which market may want to test. There is a support at 1.52 level but if market closes below 1.54 our positive scenario will lose it's power.