With the United Kingdom releasing GDP numbers for both quarter over quarter and year-over-year today, we anticipate a lot of the action to be found in the GBP/USD pair, as well as the FTSE. That being the case, we look at the FTSE breaking above 6900 as a possibility, and would be a screaming a call buying opportunity at that point in time. However, pullbacks could be had as the move has been a bit overextended and we look at pullbacks as potential value and would look to buy supportive candles via calls as well.
ftse
The GBP/USD pair did show a little bit of resilience during Monday trading, but still have to contend with the 1.52 handle. With that being the case, we have no interest in buying calls quite yet, and would not until we broke above that handle. More than likely, we should see some type of resistance in that area, and we believe it would be a put buying opportunity. However, keep in mind that the 1.50 level below has held as support so it is a short-term trade at best.
Gold turned back around during the session on Monday, and we believe that it needs to continue falling, probably closer to the $1250 level to find some type of support. We would be buyers of supportive calls down there after supportive candles prints. We are not interested in buying puts at this point in time.
The S&P 500 initially fell during the course of the day on Monday, but turned back around to form a nice-looking hammer. This tells us that the S&P 500 is in fact very well supported and if we can get above the 2060 handle, we believe that this market has a nice chance of going to the 2100 handle over the course of the next couple of weeks.