21.10.202009:36 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on October 21

Analysis of transactions in the EUR / USD pair

Euro bulls were encouraged by the speech of ECB head Christine Lagarde yesterday, thereby maintaining the bullish momentum in the market. Long positions from the level of 1.1801 got about 35 pips of profit, while those who are keen to reach the target level of 1.1850 could gain 50 pips of profit today during the Asian trading session.

Trading recommendations for October 21

Representatives from the Fed and the ECB will deliver speeches this week, which could inevitably affect market demand. But since there are no economic statistics scheduled to be published, demand is expected to increase for the European currency.

• Open a long position when the euro reaches a quote of 1.1863 (green line on the chart), and then take profit at the level of 1.1915.
• Open a short position when the euro reaches a quote of 1.1828 (red line on the chart), and then take profit at the level of 1.1762. Weak EU statistics would put pressure on the European currency

Analysis of transactions in the GBP / USD pair

Yesterday was not the best day for the pound, as the pair did not move in any direction, thereby bringing loss to both long and short positions in the morning. Fortunately in the afternoon, the quote moved down from 1.2930, however, it was only by about 20 pips.

Trading recommendations for October 21

A report indicating the UK's inflation rate will be released today, and if it came out with good figures, an increase would be seen in the GBP / USD pair. But if the data turns out to be disappointing, the bears will try to take control of the market again.

• Open a long position when the pound reaches a quote of 1.2985 (green line on the chart), and then take profit around the level of 1.3017 (thicker green line on the chart).
• Open a short position when the pound reaches a quote of 1.2966 (red line on the chart), and then take profit at least at the level of 1.2932. Bad news on Brexit, as well as low inflation rate in the UK, will continue the downward trend in the GBP / USD pair.