19.11.202009:25 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on November 19

Analysis of transactions in the EUR / USD pair

The euro remained trading in a sideways channel, even though buyers made another attempt to build a new upward direction. Before the release of inflation data in the eurozone, euro bulls set up long positions at 1.1870, however, as in the previous day, this did not lead to a large upward movement. The report on consumer prices was rather weak, thereby drying up the optimism of traders. To add to that, the data on the US economy was fairly good, so traders remained discouraged in bringing the quotes up in the market.

Trading recommendations for November 19

Today, particular attention will be drawn to the speech of ECB President, Christine Lagarde, as she may announce changes in the monetary policy or additional measures to stimulate the economy. If this happens, the pressure in the euro will increase.

In the afternoon, a report on the US labor market will be published, wherein if the data turns out better than the forecasts, the euro may decline even more.

• Open a long position when the euro reaches a quote of 1.1859 (green line on the chart) and then take profit at the level of 1.1900. However, growth will occur only in the event of bad data on the US economy.
• Open a short position when the euro reaches a quote of 1.1836 (red line on the chart) and then take profit around the level of 1.1800. Sell the euro if ECB President, Christine Lagarde, announces changes in the monetary policy, or if good statistics were released about the US economy.

Analysis of transactions in the GBP / USD pair

Good inflation data in the UK led to a slight strengthening of the British pound in the morning, which formed a good entry point for buying from the level of 1.3281. However, the first movement failed to break the monthly highs, as it only amounted to about 15 pips. It was the second attempt that was more successful, and it led to a growth of more than 30 pips. But since the Brexit negotiations still lack progress, the pressure on the pound has returned, keeping the GBP/USD pair in a sideways channel.

Trading recommendations for November 19

The pound will rely today on news regarding Brexit negotiations, that is, a positive progress will lead to a sharp rise in the British pound, while negative news or a lack of progress will result in a downward movement.

• Open a long position when the quote reaches the level of 1.3244 (green line on the chart) and then take profit around the level of 1.3292 (thicker green line on the chart). Good news on Brexit may strengthen the British pound.
• Open a short position when the quote reaches the level of 1.3220 (red line on the chart) and then take profit around the level of 1.3176. Bad news on Brexit will resume the downward trend in the GBP/USD pair.