The following events may affect EURUSD:

• All day – Bank Holiday in the USA
• 15:40 – FOMC Member Duke Speaks
• 15:45 – ECB President Trichet Speaks

The following events may affect GBPUSD:

• 01:01 – Rightmove HPI m/m
• 15:00 – MPC Member Bean Speaks
• 15:40 – FOMC Member Duke Speaks

EURUSD

Current Point and Figure Chart of EURUSD with a 3×100 Setup:

A break of the tripple bottom at 1.2800 would generate a sell signal. We will see if this level will be broken by the next week. I will keep an eye on this level. Heavy support is expected @1.2600 and @1.2400.

GBPUSD

Current Point and Figure Chart of GBPUSD with a 3×100 Setup:

Should the price fall below the 1.4000  level, it would generate a basic sell signal. Expected support @1.3600. If the price should rise above the 1.5100 level, that could indicate a break of the current down trend. But at the moment I am expecting more downward momentum.

Trading next week

I will watch the price action around the mentioned levels very closely and scalp the market with a 3×10 Point and Figure setup. As we are still in a downward motion, I will look out for opportunities to short the pairs to be on the right side of the market – “the trend is your friend”.

Should the price break the support levels, I will also add a smaller mid to long term position with a broader initial stop.