Let’s take a breather from the turmoiled cryptocurrency markets, and take a closer look at the forex majors EURUSD and GBPUSD. Trading with high leverage you can make big profits even on relatively steady markets
The current formation of the EURUSD currency pair shows the construction of a horizontal trend that moves inside a large green channel.
Over the past two months, the price has been slowly and gradually rising from the lower line to the upper line of the green channel inside the ascending yellow channel.
After the price rebounded from the upper green wall, the price fell to the lower yellow wall, but the market could not break through this line. It is possible that the bears will try again to break through the lower yellow wall near the support level of 1.2129. With a successful break, we could see the pair devalue to a lower support level of 1.1723, which is on the lower green line.
Alternatively, we could expect an increase to the resistance level of 1.2275, which is on the upper green line. If this level is broken, the price may still rise slightly to the resistance level of 1.2447, which is on the upper yellow wall.
The situation is similar to EURUSD for the GBPUSD currency pair, although not surprising since these pairs usually correlate with each other.
We see a sideways market movement within the horizontal green channel with a downward slope. Just like for EURUSD, for GBPUSD, for about two months, the price grew from the lower line to the upper line of the green channel within the ascending small yellow channel.
Now the price is near the lower yellow line and the upper green line. That is, there is a possibility of both continued growth and the beginning of a decline. If the support level of 1.4077 is broken, which is on the lower yellow line, market participants can expect a bearish price movement to the next support level of 1.3674, which is on the lower line of the green channel.
If the price goes up, and the bulls can break through the resistance level of 1.4250, then an increase to the resistance level of 1.4437 and the upper line of the yellow channel is possible.
