The EUR/USD currency pair follows the downward course of the side channel 1.1700 // 1.1810 // 1.1910, (No. of lines 6 + 5 + 4), where the quote managed to consolidate below the middle line No. 5 (area 1.1810), which theoretically can signal a further downward movement in the direction of line No. 6 (area 1.1700).
If no trading positions were opened for sale, then in this situation, it is better to enter the market below the minimum on August 21 - 1.1754, in the direction of line No. 6 (area 1.1700).
Considering all possible market development scenarios, it is worth paying attention to an alternative point of view. Price consolidation below line No. 5 (area 1.1810) does not provide sellers with an opportunity to switch to a full-fledged downward move, where, after a variable bumpiness, a price consolidation occurs above the level of 1.1825, which leads to activation of buyers and price movement in the direction of 1.1875 - 1.1900.
The GBP/USD currency pair, showing high activity, is trying to stay within the boundaries of the previous sideways channel 1.2985 // 1.3085 // 1.3185, where the middle line No. 5 (area 1.3085) plays the role of a distributor of trade forces.
It can be assumed that high market activity will continue in the market, where the area of line No. 5 (1.3055 / 1.3115) will become the starting point for future price surges.
Possible market development scenarios:
The price consolidating above the level of 1.3115 may lead to another round of the upward movement, directing the quote in the direction of 1.3200/1.3240, as it happened in the previous period.
The downward development of the market is considered if the price is consolidated below the level of 1.3055, in the direction of line No. 6 (1.2985/1.3000 area).
