EUR/USD and GBP/USD: Trading plan for beginner traders on October 31, 2023
October 31, 2023 8:23 am
Details of the Economic Calendar on October 30
On Monday, the macroeconomic calendar was practically empty. The only event worth noting was the data on the UK lending market, but it was disappointing. Almost all indicators turned out to be below the forecasts.
Analysis of Trading Charts from October 30
The EUR/USD currency pair again reached the resistance level of 1.0600/1.0620 but failed to surpass it. This led to a reduction in the volume of long positions and a subsequent price rebound.
For the GBP/USD currency pair, there was a local bullish sentiment, but there were no significant changes. The quote bounced off the 1.2150 level once again, leading to a reduction in the volume of long positions, resulting in a reversal.
Economic Calendar on October 31
Today, the preliminary estimate of inflation in the EU is expected to be published. Analyst forecasts indicate a sharp slowdown in the growth rate of consumer prices from 4.3% to 3.3%. Moreover, recent forecasts even suggest a more significant decrease to 3.1%. If such a sharp decrease in inflation is confirmed, further interest rate hikes by the European Central Bank may not occur. Furthermore, in the future, we may hear statements about the need for a more accommodative monetary policy in the EU.
EUR/USD Trading Plan for October 31
Currently, there is a price rebound from the resistance level. If the price settles steadily below the level of 1.0600, it may trigger an increase in short positions in the euro. In that case, further price decline to the level of 1.0500 is possible.
GBP/USD Trading Plan for October 31
Price stabilization below the level of 1.2150 could lead to a consecutive increase in short positions, which, in turn, could weaken the value of the British pound and lead to movement towards the level of 1.2050. As for the bullish scenario, it would require the quote to rise above the level of 1.2180. This price move could indicate a break of the resistance level and the potential for subsequent growth towards 1.2200/1.2250.
What’s on the charts
The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.
Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.
Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset’s price in the future.
The up/down arrows are landmarks of the possible price direction in the future.
The material has been provided by InstaForex Company – www.instaforex.com
Details of the Economic Calendar on October 30
On Monday, the macroeconomic calendar was practically empty. The only event worth noting was the data on the UK lending market, but it was disappointing. Almost all indicators turned out to be below the forecasts.
Analysis of Trading Charts from October 30
The EUR/USD currency pair again reached the resistance level of 1.0600/1.0620 but failed to surpass it. This led to a reduction in the volume of long positions and a subsequent price rebound.
For the GBP/USD currency pair, there was a local bullish sentiment, but there were no significant changes. The quote bounced off the 1.2150 level once again, leading to a reduction in the volume of long positions, resulting in a reversal.
Economic Calendar on October 31
Today, the preliminary estimate of inflation in the EU is expected to be published. Analyst forecasts indicate a sharp slowdown in the growth rate of consumer prices from 4.3% to 3.3%. Moreover, recent forecasts even suggest a more significant decrease to 3.1%. If such a sharp decrease in inflation is confirmed, further interest rate hikes by the European Central Bank may not occur. Furthermore, in the future, we may hear statements about the need for a more accommodative monetary policy in the EU.
EUR/USD Trading Plan for October 31
Currently, there is a price rebound from the resistance level. If the price settles steadily below the level of 1.0600, it may trigger an increase in short positions in the euro. In that case, further price decline to the level of 1.0500 is possible.
GBP/USD Trading Plan for October 31
Price stabilization below the level of 1.2150 could lead to a consecutive increase in short positions, which, in turn, could weaken the value of the British pound and lead to movement towards the level of 1.2050. As for the bullish scenario, it would require the quote to rise above the level of 1.2180. This price move could indicate a break of the resistance level and the potential for subsequent growth towards 1.2200/1.2250.
What’s on the charts
The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.
Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.
Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset’s price in the future.
The up/down arrows are landmarks of the possible price direction in the future.
The material has been provided by InstaForex Company – www.instaforex.com
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