During the session on Tuesday, there is only one economic announcement that we are paying attention to, and that is Industrial Production in the United Kingdom. With that being the case, the market could be relatively quiet overall, but we will be paying attention to the FTSE and to the GBP/USD pair, as those two markets could get a little bit of a jewel due to that particular announcement.
The GBP/USD pair has broken above the 1.52 level, and then now has returned to test that area for support. That area should continue to be a place where buyers step in, so we have a plan to buy calls on a break above the top of the range for the session on Monday. On that move, we would then head to the 1.55 handle in our opinion.
The FTSE looks a little bit resilient as we initially fell during the course of the session on Monday, but bounced enough to form a hammer. That hammer of course suggests that the market could go a bit higher, and if we break the top of the hammer, we should then go towards the 6900 level, offering call buying opportunities. With that, we are bullish the FTSE in general and we think that ultimately we do break out eventually.
Gold markets had a little bit of stability during the session on Monday, but still have a long way to go to wipe out all the losses from Friday. Nonetheless, if we can break the top of the range for the Monday session, the market should be one that you can buy calls in and try to aim for the $1260 level.