Brief trading recommendations for EUR/USD and GBP/USD on 08/28/20

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After a long price fluctuation in the range of 1.1780/1.1850, the EUR/USD currency pair managed to show a very high activity, locally breaking the upper boundary of 1.1850 and directing the quote towards line no. 4 (1.1900), the main flat formation (side channel).

The recommendation to work on the breakdown of one or another boundary of the range coincided by 100%, which brought us a quick profit.

Regarding the current market situation, it can be seen that after the high activity, the quote still remained in the upper part of the main side channel 1.1700 // 1.1810 // 1.1900 (1.1910), (lines No. 6, 5 and 4).

Based on the obtained data on finding the quote relative to the side channel, the following possible scenarios can be considered:

First, a movement towards line No. 4.

In this situation, we consider the retention of the current price movement in the upper part of the side channel 1.1700 // 1.1810 // 1.1900 (1.1910), where the quote will approach the line number 4 (area 1.1900/1.1910).

Second, another slowdown with the transition to the lower part of the channel, lines no. 5 and 6.

After yesterday's high activity, the quote resumes the slow down process within the boundaries of 1.1780/1.1850, where price consolidation below 1.1770 leads to a price change to the lower part of the main flat 1.1700 // 1.1810 // 1.1900 (1.1910).

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On the other hand, the GBP/USD currency pair repeated the scenario of a very high activity of the Euro, and as a result of which, price jumps occurred in the market, which led us to the area of local highs on August 19 and 21.

The scenario of high activity was considered in the previous review, where it was set that if the price consolidates above 1.3225, it will open the way towards the values of 1.3250/1.3265. This brought us a quick profit.

Regarding the current market situation, you can see that the quote of the pound is located around the local highs on August 19 and 21 (1.3250/1.3265 area).

Based on the obtained data on finding the quote relative to local highs, the following possible scenarios can be considered:

First, price consolidation above local highs.

In this situation, the price consolidating above the 1.3265/1.3280 area is considered, rather than piercing the shadows, as it was the day before. This step can lead to the further upward development of the price, in the direction of 1.3380-1.3450.

Second, a slowdown followed by a price rebound.

This scenario considers the natural basis of the past, where the area of 1.3265/1.3280 exerts pressure on the quote, which leads to a slowdown and a price rebound towards 1.3200.

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