The EUR/USD pair continues to move along a downward direction, where the support level of 1.1650 was locally broken yesterday, which indicates the prevailing interest from the sellers. Holding the price steadily below the side channel 1.1700 // 1.1810 // 1.1910 also confirms the development of the downside, which can lead to a trend change from an upward to a downward one.
Based on the data obtained on the price level, we can assume that the market is experiencing a pullback, which will temporarily postpone the downward development. The maximum pullback/correction value is based on the border of the previously broken side channel, that is, movement towards the level of 1.1700/1.1710. Moreover, the resumption of the downward interest will occur after the price focuses below the level of 1.1650, in the direction of 1.1550-1.1500.
On the other hand, the GBP/USD pair is in a slowdown stage after letting the price consolidate below the level of 1.2770, where the range of 1.2674/1.2770 has become a temporary amplitude. The breakdown of the support level 1.2770 is undeniable, and the market is gradually changing its medium-term direction from an upward trend to a downward one. Contrary to the euro, the pound has already managed to decline by about 6% since the beginning of September, which indicates the current downward interest.
The amplitude within the boundaries of 1.2674/1.2770 will soon be set, where the downward development will be considered as the main strategy based on the previously obtained data from price consolidation below the support level 1.2770 and the depth of the downward movement from September 1.
Theoretically, an alternative scenario of market development may arise in terms of a more significant correction, instead of the existing stagnation within the boundaries of 1.2674/1.2770, but even with this result, we still have a high chance of resuming the downward movement, but with a small time delay.The material has been provided by InstaForex Company - www.instaforex.com