monthly high

The GBP/USD pair has hit 61% Fibonacci retracement level on the weekly time frame chart located at 1.2778 and so far the price was rejected from that level. This is the line in sand for bears as any breakout higher would be considered even more bullish. So far the monthly high was made at the level of 1.2847. On the lower time frames, like H4, the intraday technical support is seen at the level of 1.2712 and 1.2698. The momentum hit the level of fifty, so it is neutral, but the there is still a chance for the price to move lower towards the technical supports. Please notice, the price was rejected from the 50 MA on H4 time frame chart already.      

Yesterday, there was only one entry signal. Now, let's look at the 5-minute chart and figure out what actually happened. In my morning article, I turned your attention to 1.0933 and recommended making decisions with this level in focus. A rise and a false breakout of this level led to a sell signal, which resulted in a drop of only 20 pips. In the afternoon, there were no signals to enter the market.   For long positions on EUR/USD: Theeuro continued to rise after the speech of Federal Reserve Chairman Jerome Powell. He didn't exactly say anything surprising, and traders expected a bullish scenario for EUR/USD.   Today, the European Central Bank represented by ECB Executive Board member Fabio Panetta and ECB board member Joachim Nagel are expected to give another interview. We are already aware that politicians will support ECB President Christine Lagarde's plans to fight inflation by betting on a further increase in the cost of borrowing in the eurozone, which will definitely support the euro on its way to break through the 1.1000 level.   The eurozone consumer confidence indicator will not be of much significance as experts do not project drastic changes in June. Like yesterday, I will go long on a decline from the nearest support level at 1.0956, which is in line with the bullish moving averages.   A false breakout there will create a buy signal, and the pair could go back up, and the resistance level will be updated at 1.0997. A breakout and a downward retest of this level will boost demand for the euro, pushing it to a monthly high of 1.1029. A more distant target will be the 1.1060 level where I recommend locking in profits. If EUR/USD declines and bulls fail to defend 1.0956, the demand for the euro will be very weak.   Therefore, only a false breakout of the support level of 1.0911 will create new entry points into long positions. You could buy EUR/USD at a bounce from 1.0862, keeping in mind an upward intraday correction of 30-35 pips.