In early trade on Monday the EUR/USD approached a near-two-week high of 1.1820 after assurances from Italy that it would not leave the European Union calmed investors' nerves.

The main pairs were range-bound ahead of decisive meetings of both central banks this week. Te Fed is widely expected to raise its target rate by another 25bp on Wednesday. The ECB is getting closer to winding down its QE program. We expect a hint in this regard this week.

This is how we trade now:

EUR/GBP

Trading strategy: Long

Open: 0.8780

Target: 0.8960

Stop-loss: 0.8780 (raised from 0.8690)

Recommended size: 1.22 mini lots per $10,000 in your account

Short analysis: The long remains and it's in better shape. The pair gets support from the 100-day SMA and RSIs are rising. A break and close above the 200-day SMA (0.8836) and May's high (0.8843) should will be a big step towards our target. Our stop has been raised to cost.

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