EUR/USD and GBP/USD: Trading plan for beginners on August 8, 2023
August 8, 2023 10:23 am
Details of the economic calendar on August 7
Monday was traditionally accompanied by an empty macroeconomic calendar. Important statistical data in the European Union, the United Kingdom, and the United States were not published.
Analysis of trading charts from August 7
The EUR/USD exchange rate dropped below the 1.1000 level again, indicating a prevailing bearish sentiment in the market. It should be noted that the current movement is characterized as a correction from the medium-term trend peak.
Regarding the GBP/USD, the slowing growth rate may also indicate a prevailing bearish sentiment among market participants. It’s important to highlight that, according to tactical analysis, there’s a three-week corrective move from the local peak of the medium-term trend, during which a slight pullback has occurred.
Essentially, the euro and the British pound continue to decline relative to the U.S. dollar, and the current movement can be seen as a temporary deviation from the main trend.
Economic calendar for August 8
The speeches by several representatives of the U.S. Federal Reserve System are of particular interest today, as it is expected that no significant economic indicators will be published.
EUR/USD trading plan for August 8
If the euro against the U.S. dollar consistently stays below the 1.1000 level, it may lead to an increase in short positions and a further drop to 1.0900. However, if the price holds above the 1.1050 level, traders will consider a bullish scenario. In that case, a subsequent recovery phase of the euro rate is possible, which may conclude the current market correction.
GBP/USD trading plan for August 8
If the quote remains stable below the 1.2700 level, the bearish scenario becomes relevant within the correction framework. This will lead to an increase in short positions and possibly an update of the correction’s low. At the same time, a bullish scenario implies a gradual recovery in the value of the British pound relative to the ongoing correction. A primary technical signal for a bullish scenario might emerge if the price holds above the 1.2800 level during the day.
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 August 7
Monday was traditionally accompanied by an empty macroeconomic calendar. Important statistical data in the European Union, the United Kingdom, and the United States were not published.
Analysis of trading charts from August 7
The EUR/USD exchange rate dropped below the 1.1000 level again, indicating a prevailing bearish sentiment in the market. It should be noted that the current movement is characterized as a correction from the medium-term trend peak.
Regarding the GBP/USD, the slowing growth rate may also indicate a prevailing bearish sentiment among market participants. It’s important to highlight that, according to tactical analysis, there’s a three-week corrective move from the local peak of the medium-term trend, during which a slight pullback has occurred.
Essentially, the euro and the British pound continue to decline relative to the U.S. dollar, and the current movement can be seen as a temporary deviation from the main trend.
Economic calendar for August 8
The speeches by several representatives of the U.S. Federal Reserve System are of particular interest today, as it is expected that no significant economic indicators will be published.
EUR/USD trading plan for August 8
If the euro against the U.S. dollar consistently stays below the 1.1000 level, it may lead to an increase in short positions and a further drop to 1.0900. However, if the price holds above the 1.1050 level, traders will consider a bullish scenario. In that case, a subsequent recovery phase of the euro rate is possible, which may conclude the current market correction.
GBP/USD trading plan for August 8
If the quote remains stable below the 1.2700 level, the bearish scenario becomes relevant within the correction framework. This will lead to an increase in short positions and possibly an update of the correction’s low. At the same time, a bullish scenario implies a gradual recovery in the value of the British pound relative to the ongoing correction. A primary technical signal for a bullish scenario might emerge if the price holds above the 1.2800 level during the day.
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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