The EUR/USD currency pair continues to move along the average level of 1.1810 (line no. 5), where the amplitude of 1.1780/1.1850 has become a temporary level in the market.
The longer the quote follows in a narrow amplitude, the higher the probability of a surge of activity, if a particular oscillation boundary breaks down.
Based on the obtained data, we can consider scenarios for possible market development:
- Buying a currency pair at a price above 1.1850 is recommended, with the prospect of moving to 1.1880-1.1900
- Selling a currency pair at a price below 1.1780 is recommended, with the prospect of moving to 1.1755-1.1700.
Meanwhile, the GB/PUSD currency pair managed to get closer to the upper border of the side channel on the wave of the upward movement 1.2985 // 1.3085 // 1.3185 (lines no. 6, 5, and 4), where there was a natural slowdown.
If we continue from the consecutive rebound of the price on July 31 and August 6, we can assume that the current slowdown may become a reversal of the downward movement in the direction of line no. 5 (1.3085 area).
Alternatively, the market development will be considered in case of price consolidation above the level of 1.3200, in the direction of local highs on August 19 and 21.