Brief trading recommendations for EUR/USD and GBP/USD on 07/30/20

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For the EUR/USD currency pair, there is a coincidence of technical analysis regarding the ascending channels, where the quote with surgical accuracy follows the trend lines that were built last week. The trading recommendation regarding the price rebound from the lower border of the yellow channel has a 100% coincidence, where it was possible to take profit from the level of 1.1740 towards 1.1780.

Analyzing the current price fluctuation relative to the technical analysis, we can see the touch of the upper border of the blue channel (1.1793), where resistance was found, on the basis of which it was possible to return to the lower border of the yellow channel (1.1768). In the current situation, there is something similar to the previous trading day, where we will receive a sell or buy signal depending on the price fixing points relative to the trend lines.

Two possible development scenarios can be considered based on the location of trend lines relative to the price.

The first scenario considers a further upward movement along the border of the yellow channel, where if the price consolidates above the level of 1.1800, the way will open towards the level of 1.1850. In fact, this step will change the slope of the blue channel.

The second scenario considers the breakdown of the yellow channel and, as a result, the price rebound from the upper border of the blue channel, which may lead to a correction stage in the market. In this case, we can consider entering the market below the level of 1.1760 towards 1.1700. The next sell position will occur after the price consolidates below 1.1680.

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The GBP/USD currency pair has a control touch at the psychological level of 1.3000, where a characteristic slowdown of the quote occurred, thereby repeating the natural component of the market.

As discussed in the previous review, the level of 1.3000 is in this case a resistance in the market, but due to its high degree of importance, its interaction boundaries are extended by 50 points on each side (1.2950//1.3000//1.3050).

The first signal that the trader will receive is a rebound from the coordinate and fixing the price lower than 1.2940. This signal can lead to a move towards 1.2885-1.2800. Also, every experienced trader knows in personal practice that there are no impenetrable levels in the market, which means that price consolidation above the level of 1.3050 can lead to further price movement towards the breakdown.

Based on the above information, the following conclusions can be drawn:

- Buy positions should be considered above 1.3055 with the prospect of a movement to 1.3100-1.3150.

- Sell positions should be considered below 1.2940 with the prospect of a movement to 1.2885-1.2800.

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The material has been provided by InstaForex Company - www.instaforex.com