FX.co ★ Brief trading recommendations for EUR/USD and GBP/USD on 09/08/20

For the fourth day in a row, the EUR/USD pair follows within the lower boundary of the rising channel from trend lines No. 1, 2 and 3, where the 1.1790/1.1810 area naturally plays the role of interaction of trading forces, slowing down the downward movement.

Such a long stagnation may signal that the downward interest is still taking place in the market, and the upward channel is under pressure from sellers; otherwise, the price would rebound from line No. 1, in the direction of lines No. 2 and 3.

The chances of downward development are increasing every day, but there is no need to rush into action. The most ideal point for entering sell positions is below the level of 1.1780, where market participants are waiting for a price consolidation.

The market development scenarios presented in the reviews on September 4 and 7 are still relevant.

First, the price moves in the direction of the rising channel.

The rising channel continues its work, where price consolidation above 1.1880 indicates buyers' desire to set a clock towards the upper border of the channel. Thus, we will consider buying positions above 1.1880, towards the values 1.1920-1.1960-1.2000.

Second, the breakdown of the lower border of the rising channel.

As already mentioned in previous analytical reviews, nothing lasts – trends, channel, border and levels will be broken through by quotes sooner or later, and you should be ready for this.

In this case, price consolidation below 1.1780 (not a puncture by the shadows) will indicate a breakdown of line No. 1, which may lead to a further decline towards 1.1755-1.1700.

The GBP/USD pair continues to move along a downward course, implementing the previously set forecast. The rising channel from lines No. 1, 2 and 3 is considered to have broken through in the downward direction. Everything changed entirely after market participants reached the local high of 2019. Moreover, the first projected coordinates 1.3200 was hit by the market last Friday, while the second projected coordinates 1.3100 are already at the consolidation stage.

The following movement will depend on the behavior of market participants relative to the value of 1.3100, since the main pivot is in the 1.3000 area, where the price rebounds on a regular basis.