British announcements

We believe that the biggest movers of the market during the session on Tuesday will probably be PPI and CPI numbers coming out of the United Kingdom. Because of this, we will pay attention to the British pound and the FTSE, but we also recognize that there could be quite a bit of motion in other markets as well.

EUR/GBP pulls back

The EUR/GBP pair pulled back during the course of the day on Monday, but found a bit of support near the 0.76 level. We believe the 0.75 level is the “floor” in this market, so it is only a matter of time before we for some type of supportive candle in our opinion. With that being the case, we would be buyers of calls on either a bounce or the aforementioned candle.

FTSE continues to struggle

The FTSE initially tried to rally during the course of the session on Monday, but turned back around in order to form a bit of a shooting star. With that being the case, we believe that the buyers will continue to enter this market on short-term charts again and again, and then eventually we will break down too much lower levels.

GBP/USD rallies, but struggles

The GBP/USD pair rose during the course of the session on Monday, but gave back a bit of the gains near the 1.43 level. With that being the case, the market looks as if it is going to break down from here, and therefore the time we rally we are willing to buy puts as we believe the downtrend should continue.