While the British pound extended its record selloff in the aftermath of last week's vote, the euro traded sideways on Monday, straining the nerves of breakout-traders as price movements were limited to either side. The euro gained some ground above the 1.0970-level, but this does not necessarily mean that bearish momentum has already been exhausted. If the euro breaks again below 1.10 we see chances of a renewed downslide towards 1.0950 and 1.09. On the other hand, if the euro climbs above 1.1085 a next crucial resistance level is seen at 1.1133. The euro would need to break that level significantly in order to invigorate fresh bullish momentum. 
The pound sterling tagged a fresh low at 1.3120 from where it started a relief rally. The focus will now shift to the 1.3475-resistance and in case sterling is able to take this hurdle, we could see a rally towards 1.37 and 1.3780. However, if GBP remains below 1.3360 we favor a bearish stance with a next lower target at 1.3050.
From the U.S. we have revisions to first-quarter GDP scheduled for release at 12:30 UTC followed by Consumer Confidence at 14:00 UTC. These reports may have an impact on the greenback but for the time being, economic reports are likely to be of secondary importance as compared with talks about the guidance on how the U.K. will be extricated from the EU bloc. Prime Minister David Cameron will meet EU leaders for dinner today.
Here are our daily signal alerts:
EUR/USD
Long at 1.1075 SL 25 TP 40-50
Short at 1.1010 SL 25 TP 40-50
GBP/USD
Long at 1.3320 SL 25 TP 40-50
Short at 1.3215 SL 25 TP 50, 100
We wish you good trades and many pips!
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