21.08.202008:40 Forex Analysis & Reviews: Brief trading recommendations for EUR/USD and GBP/USD on 08/21/20

The EUR/USD currency pair, following a downward course, found a pivot point in the face of the average level of the side channel 1.1700 // 1.1810 // 1.1910, (6 + 5 + 4, number of lines), where the price rebound on a regular basis in the opposite direction of the market.

Based on the sequence of fluctuations within the side channel, it can be assumed that keeping the upward cycle from line No. 5 (area 1.1810) may lead the quote to line No. 4 (area 1.1910), where the price interaction points may shift due to the recent channel breakout attempts: 1.1910 ---> 1.1900 / 1.1950.

If the above scenario is implemented, a sharp decline of the upward movement in the 1.1900/1.1950 area is not excluded, where a rebound in the opposite direction may occur.

Market development alternative scenario:

The situation of a slowdown in the upward movement relative to the current values, where consolidating the price below the level of 1.1850 leads to a move in the direction of line No. 5 (area 1.1800/1.1810) will be considered.

The GBP/USD currency pair showed itself the most aggressive in comparison with the European currency, the price decline to the area of the average level of 1.3085 slowed down the downward movement, where a sharp reversal occurred, which, as a result, returned the quote to the limits of the recent local maximum.

It can be assumed that high market activity will still remain on the market, where the next move will be clear depending on the price behavior in the area of the local maximum of 1.3230/1.3265.

Market development scenario:

Price consolidation above the level of 1.3265 leads to a further upward move towards the level of 1.3300, where the side channel from lines No. 4, 5 and 6 will be considered broken.

A deceleration in the price within the 1.3230/1.3265 area may indicate a reverse price movement within the boundaries of the side channel 1.2985 // 1.3085 // 1.3185.