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EUR/JPY 1 Hour Forex Chart
EUR/JPY 1 Hour Forex Chart

It looks like the pullback higher I was looking for came and then some!  The tight consolidation early in the week was quickly broken but moved back into consolidation mode between 137.50 – 138.00.  So where to now?

Well, we’ve got a stacked forex calendar for this week, most notably the ECB monetary policy decision this Thursday, August 7.  Barring any surprise events, we could see traders on the sidelines until that event where another consolidation breakout opportunity may develop.  Also, a retest of the moving averages and bottom WATR area may draw in fresh buyers to the pair.

  • WO: 137.68
  • Top WATR: 138.44
  • Bottom WATR: 136.93
  • PWH: 138.04
  • PWL: 136.63


GBP/JPY 1 Hour Forex Chart
GBP/JPY 1 Hour Forex Chart

Volatility also picked up for Guppy, but in a much bigger way as we saw over 100 pip moves in both directions.  To me, it looks like this pair is in rangebound, but I am leaning towards playing a bearish move given the lower highs since the beginning of July.  I’ve got my alerts set to the top WATRA area, which also happens to be near the moving averages to potentially draw in fresh sellers.  I wouldn’t mind checking out the bottom WATR level for a long play as well since that was a strong area of interest between April and June.

  • WO: 172.53
  • Top WATR: 173.54
  • Bottom WATR: 171.53
  • PWH: 174.22
  • PWL: 172.38


EUR/GBP 1 Hour Forex Chart
EUR/GBP 1 Hour Forex Chart

Despite the big upside breakout and broad Sterling weakness, I think the longer term downtrend in EUR/GBP is still intact.  But given the fact that we have monetary policy decisions for both the U.K. and Europe, I’ll be in wait-and-see mode for this pair before taking any action.  A retest of the .8000 to top WATR area will definitely get my attention, ONLY if I see bearish reversal candles form in that area.  But given the long drop we’ve seen this year, I wouldn’t be surprised if we see a deeper pullback…be safe with this pair forex traders!

  • WO: .7981
  • Top WATR: .8020
  • Bottom WATR: .7943
  • PWH: .7985
  • PWL: .7903

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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.