04.09.202009:09 Forex Analysis & Reviews: Brief trading recommendations for EUR/USD and GBP/USD on 09/04/20

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For this week's trading, the EUR/USD currency pair managed to form a full-fledged cycle from the upper border of the rising channel, the area of the resistance level 1.2000 (line no. 3), to the lower border of the channel, that is, in the area of 1.1790/1.1810 (line no. 1).

A price rebound from the lower border of the channel (line No. 1) indicates the relevance of the upward development of the market, but you should remember that trends, channels, and levels do not last. Everything will be broken sooner or later, so you should be prepared in advance for possible extreme changes in the market.

Based on the obtained data on finding the quote relative to price channels, we can consider several scenarios for market development:

First, a price movement in the direction of the rising channel.

The rising channel continues to develop, where price consolidating above 1.1880 indicates buyers' desire to beat the side of the upper border of the channel. Now, 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 mentioned above, nothing is eternal, and when a quote is near a particular border, it is worth considering the "breakout" scenario. In this case, price consolidating below 1.1780 will indicate a breakdown of line no. 1, which may lead to a further decline towards the range of 1.1755-1.1700.

On the other hand, the GBP/USD currency pair, moving along a downward course, found a pivot in the 1.3255/1.3300 area, where market participants tried to continue the course set at the beginning of the week. However, the attempt failed, which resulted in a stagnation.

We can assume that the downward interest is still felt in the market, where if the price consolidates below 1.3240/1.3255, a way may open in the direction of 1.3200-1.3100.

An alternative scenario for the market development is considered to end the downward trend. If the price consolidates above 1.3325, we can continue towards 1.3350-1.3380.

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