EUR/USD
Monday's recovery off 1.2871 will look to extend Tuesday to put last Friday's peak at 1.3008 under pressure. A break above there is favoured at this stage, opening 1.3055 and congested resistance at 1.3095, incorporating both a wave equality target and the May 10 lower high. Failure to break above 1.3008 would suggest more lateral consolidation is required prior to an upside break, prompting a drift back towards the 1.2871 low.
GBP/USD
Failure to keep former range highs at 1.5230 intact is an indication of GBP weakness, and while 1.5283 caps the upside, there is scope for renewed bear pressure on support at 1.5205. A break below there would unveil the downwave equality target at 1.5158, which lies close to the 61.8% retracement level of the 1.4949/1.5470 rally, at 1.5145. Above 1.5283 would lift the tone, but only regaining ground above the 1.5349 lower high would suggest a return to the 1.5470 is possible.
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