FX.co ★ Brief trading recommendations for EUR/USD and GBP/USD on 10/05/20

The EUR/USD pair is moving along the correction course from the local low of 1.1612, where there was a stagnation in the variable range of 1.1700/1.1770 during the period of September 30 - October 2. A smooth transition between a correction and a recovery of downward move may indicate a versatile interest among market participants, which may lead to a surge in activity when a particular stagnation boundary is broken.

Based on the obtained data on the quote, we can consider several likely scenarios for the market development. These are as follows:

The first scenario is based on the downward trend set in the market last September, where the current correction and stagnation are an integral part of it. Thus, a price consolidation below 1.1685 may indicate the continuation of decline in the direction of the local low of 1.1612.

The second scenario is considered based on the logic of versatile interest, during the period of price fluctuations in the range of 1.1700/1.1770, which can lead to a sharp surge in activity, where work will be carried out exclusively on the breakdown of a particular period.

On the other hand, the GBP/USD pair showed very high activity last week, where price surges were associated exclusively with the informational background on Brexit.

If we assume that technical analysis worked with great interruptions, then in the current situation, the best trading method is considered to be the analysis of the information flow associated with the Brexit process. Based on the information received, positive or negative data about the Brexit deal will affect the pound's value.