Nothing new on the EURUSD front, still in the same range, so I’ll focus more on the pound in this analysis. GU looks strongly bullish and many retailers are looking for longs into next week, from what I have read, so its good to look into the other direction. Monday is the last day of the month and tuesday the first day of september, so a correction might start early this week. Trading volume should go up in september, with banks coming back from “vacation”, so its the perfect time for good corrections(or reversals?).
Monday’s asian session will show if bulls want to continue upwards or not and if not, Frankfurt might be a second chance for bulls to do a spike up, between 8am and 9am central European time, before London opens. So if there is going to be a spike up before the correction starts, I would bet on Frankfurt, as they usually do this on mondays. IF NOT, that will mean the bulls are weak and bears will probably take over early and can target even 1.30 again in september. My bear target is 3150 only and from then on we will see what happens.
Chart is clear to me, the upper range should hold or in case of a spike up, it should be only short-term.