After a long upward move, the EUR/USD currency pair still managed to enter a correction stage, which led to a decline in the European currency rate to the 1.1705/1.1715 region. We expected such a development in the previous article, referring to economic and technical factors.
If we compare the trajectory of the price with the blue trend lines, we will see that the area of the local support 1.1705/1.1715 coincided with the average level of the ascending channel, where the quote of the European currency managed to rebound, directing the price towards the channel.
In this situation, it is possible to follow two technical methods at once:
The first option considers the price movement towards the upper border of the blue ascending channel, the area of 1.1790/1.1800, where you can work both on a breakout and a rebound.
The second option considers the deceleration of the price relative to the current coordinate, where the decline of the quote below the level of 1.1750 will lead to a cascading decline in the value of the European currency 1.1740 - 1.1710 - 1.1690.
Technical analysis is based on trend line trajectories that follow the natural basis of the market.
For the GBP/USD currency pair, a sealed amplitude movement is recorded within 1.3060/1.3085, which has been on the market for more than 12 hours. The price fluctuation in a narrow sideways range indicates the uncertainty of market participants for further actions, but at the same time, we get an excellent signal about the upcoming acceleration in case of a breakdown of one or another border.
Based on the above, we can already prepare for a local surge in activity, if the quote manages to consolidate above or below the established boundaries of 1.3060/1.3085.
Buy positions should be considered above the level of 1.3090, with the prospect of a move to 1.3110.
Sell positions should be considered below the level of 1.3055, with the prospect of a move to 1.3020-1.3000.
