With PMI data out this morning for the UK, Europe followed by the US this afternoon, we can expect some volatility in the market today, perhaps enough to shake cable out of this choppy price action we have been seeing.
GBP Futures (6B, Sep)
Daily TPO - Much will depend on the data however the profiles suggest there is space to the downside for GBP to continue lower. Clear liquidity remains at 1.2600, we can see the poor low left behind a few days previous which may give some support also at 1.2690 (futures price)
AM Session profile - None the less we remain bearish for the short term on GBP, considering positive PMI to cause nothing more than short term bullish momentum which will likely be sold into.
15min candlestick chart GBPUSD - anything can happen with macro news, however Euro PMI has left behind a strong stacked imbalance, if we were to fill this once again, would provide a strong level of resistance.
Euro Futures (6e, sep)
After some heavy selling this morning, we should be patient and await a retest of some key levels before entering shorts.
AM TPO - on the morning session charts the green box which represents a single print TPO would provide the best area of shorting around 1.0865 (futures).
Daily TPO - Euro is approaching naked POC on the daily which dampens any risk to reward ratio for sellers unless its very short term.
15min candlestick EURUSD - with clear liquidity and retail order block sitting above the AM single print, it raises the question whether the market will be able to hold here or not. The risk reward this morning chasing moves doesn't align well for further shorts on the Euro for the time being therefore the recommendation is to not chase the market, let it rebalance as the real move appears to have already occurred.
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