EUR/USD
The Euro initially tried to rally during the day on Tuesday, but turned right back around to fall below the 1.10 level again. Ultimately, this is a market that continues to drop over the longer term and I believe that every time we rally, you have to be looking for selling opportunities based upon exhaustion. I do not have any interest whatsoever in buying this market and I believe that we are going to reach towards the 1.09 level below, and then eventually the 1.05 handle after that. I think the 1.1150 level is massively resistive, so I do not think that until we break above there with significant static we can even remotely think about buying this market. With this being the case, I think you can sell and sell again.
GBP/USD
The GBP/USD pair rose during the course of the session on Tuesday, as we are testing the 1.23 level again. That being the case, the market should continue to see quite a bit of resistance above, so it’s only a matter of time before the sellers get back involved and I think on resistive candles you can start shorting the British pound yet again. I believe that the 1.20 level below of course is a massive floor, but given enough time I think we could break down below there. Having said that, the British pound selloff as quickly as once did, because we already know about the exit vote, so most of the knee-jerk reaction will be over with. That being the case, I am a seller so as we see signs of exhaustion and have no interest whatsoever in buying.
If we did break above the 1.2850 level, I think that would be a very bullish sign but even then I think we would only consolidate as we had previously.
