EURUSD. Trend is downwards on the daily chart. Pair is consolidating after a sharp drop. "Flag" figure has formed as a result of the consolidation. It is a figure of continue trend. If the formation will develop, after overcoming support be expected to rally down to the target level.  You can try to put buy stop order on the 1.3694 level, put stop-loss order just below  1.3579 in this case. You can try to put sell stop order on the 1.3579 level, put stop-loss order above 1.3694 in this case. There are many false alarms possible during consolidation. It makes trading difficult. I recommend to use the tactic of re-entry.

 
GBPUSD. Trend is downwards on the daily chart. A pair is consolidating after a sharp drop. You can try to put sell stop order on the 1.5025 level, put stop-loss order above 1.5096 in this case. There are many false alarms possible during consolidation. It makes trading difficult. I recommend to use the tactic of re-entry.


Elena Chernaya, Chief Currency Strategist
ELAN Investment Solutions

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