27.10.202009:08 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on October 27

Analysis of transactions in the EUR / USD pair

The market drew a sell signal in the euro yesterday, however, the downward movement only to 15-20 pips. Nevertheless, demand for the currency remains low, mainly due to the continued attack of COVID-19 in Europe, as well as on the decreasing business confidence in Germany.

Trading recommendations for October 27

Today, a number of reports on lending in the eurozone, as well as on consumer confidence in the United States will be published, and they could put significant pressure on the euro, especially if the indicators came out above the forecasts of economists. To add to that, the deteriorating situation with the coronavirus will also discourage investors from betting on the strengthening of the euro in the short term.

• Open a long position when the euro reaches a quote of 1.1836 (green line on the chart), and then take profit at the level of 1.1884. Good lending data in Europe is unlikely to provide support to the euro, so look for good news on Brexit.
• Open a short position when the euro reaches a quote of 1.1806 (red line on the chart, and then take profit around the level of 1.1762. If the indicators turn out to be worse than the forecasts, pressure on the European currency will return.

Analysis of transactions in the GBP / USD pair

The pound traded in a sideways channel yesterday, so as a result, no profit was obtained both on long and short positions in the market. Only repeated sales from the level of 1.3016 were quite successful, however, it only covered the capital of traders.

Trading recommendations for October 27

Since there are no economic reports scheduled for release today, the attention of traders will be shifted on the next round of negotiations between the UK and the EU over the long-disputed post-Brexit trade deal. Good news about it will lead to a new wave of growth on the British pound, whereas a bad news could lead to another decline in the GBP / USD pair.

• Open a long position when the pound reaches a quote of 1.3045 (green line on the chart), and then take profit around the level of 1.3140 (thicker green line on the chart).
• Open a short position when the pound reaches a quote of 1.3011 (red line on the chart), and then take profit at least at the level of 1.2935. Bad news on Brexit will resume the downward trend in the GBP/USD pair.