While there has been only little volatility in the EUR/USD, the cable has surged strongly after the 1.42-support was able to withstand the downward pressure. Subsequently, the GBP/USD marked a high around 1.4320, a level where we see a short-term resistance for the currency pair.
GBP/USD
Today, sterling traders should keep an eye on the U.K. Services PMI, scheduled for release at 8:30 GMT. If data surprises to the upside we will look out for a break above 1.4325 in order to buy sterling towards higher targets at 1.44 and 1.4430. As we generally favor a bearish bias in the British pound, we expect possible gains to be limited until 1.4435 and 1.45. On the bottom side the focus remains on the 1.42-support, and it would require a break below 1.4170 in order to drive the pound towards 1.41 and 1.4050. 
EUR/USD
From the Eurozone we have Retail Sales scheduled for release at 9:00 GMT, but this report is not expected to have a significant impact on the euro. As long as there is no catalyst triggering fresh momentum and pointing the direction, the euro may continue to trade sideways. In case of a break above 1.1415 the currency pair may head for a test of 1.1450. However, after a break below 1.1370, next supports are seen at 1.1340 and 1.1310.
The most important news from the U.S. will be ISM Non-Manufacturing PMI, due at 14:00 GMT after trade balance is scheduled for release at 12:30 GMT.
Here are our daily signal alerts:
EUR/USD
Long at 1.1415 SL 25 TP 20, 40
Short at 1.1379 SL 25 TP 20, 40
GBP/USD
Long at 1.4285 SL 25 TP 20, 40
Short at 1.4235 SL 25 TP 20, 40
We wish you good trades and many pips!
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