We welcome you to a new trading week. While this week could start off quiet with U.S. markets being closed on Monday for a public holiday (Independence Day), it provides plenty of interesting economic data and reports in the following four trading days. Market participants will pay the greatest attention to the U.S. Employment report on Friday. U.S. payrolls are expected to show a growth of 180K jobs in June after last month's weakest advance in almost six years. While a rebound is expected, which would be dollar-positive, investors pushed back bets the Federal Reserve will raise interest rates any time soon, assuming that the Fed could forgo a rate hike in 2016.
On Wednesday, the ISM Non-Manufacturing index will be watched closely in order to shape the market's expectations for Friday's NFP numbers. On the same day, the FOMC minutes are scheduled for release, but we expect the minutes to be a non-event for traders, as the statement represents the view of Fed officials before the Brexit vote.
On Tuesday, U.K. Conservative Party lawmakers begin balloting to elect a successor to David Cameron, who will have to take the difficult decision on the country's further course. While all of the candidates say that the referendum result needs to be respected, the more willingness to compromise a candidate shows, the better it will be for the British pound. Furthermore, the Bank of England will publish its Financial Stability Report Tuesday, followed by a news conference led by BoE Governor Mark Carney 30 minutes later.
Let's have a brief look at the technical picture:
GBP/USD
As long as prices remain below 1.3340, the descending-triangle-pattern remains intact. In other words, as long as we do not see an upside break above 1.3340/50 we favor a bearish stance in this pair. Below 1.32, a next target could be at 1.31. On the upper side, the 1.35-level could limit gains in short-term time frames. 
EUR/USD
Prices formatted an ascending triangle, predicting upcoming bullish momentum. Our focus therefore shifts to an upside break of 1.1170/80, with a following move towards 1.1215 in a first step. Above 1.1240, we may see a test of 1.13 and 1.1350. However, below 1.1070 downward movements are becoming more likely, driving the euro towards 1.1025 and 1.0975.
Here are our daily signal alerts:
EUR/USD
Long at 1.1170 SL 25 TP 40-45
Short at 1.1110 SL 25 TP 35-40
GBP/USD
Long at 1.3310 SL 25 TP 40-50
Short at 1.3269 SL 25 TP 20, 50
We wish you good trades and many pips!
Disclaimer: Any and all liability of the author is excluded.