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01.02.202109:59 Forex Analysis & Reviews: Trading recommendations for starters of EUR/USD and GBP/USD on February 1, 2021

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The US dollar continued to lose its positions against its competitors last Friday. There were no fundamental changes in the market, so the quotes are conditionally still there.

In terms of the economic calendar, we did not have such important statistics, which is probably why the market did not react particularly to them, following the previously set course.

Europe's data on the lending market was published, where corporate loans rose from 6.9% to 7.0%. Consumer lending, in turn, remained unchanged, instead of the forecasted growth from 3.1% to 3.2%.

United States' indicators on personal income and spending were also released, where growth was recorded.

What happened on the trading chart?

The EUR/USD pair showed an upward interest towards the level of 1.2150, but there are no fundamental changes in the general analysis of the trading schedule. The quote still follows the range of 1.2050/1.2190 for two weeks.

The GBP/USD pair continues to focus at the high of the medium-term trend, where the area of the high (1.3750) still puts pressure on buyers, which leads to a sharp drop in the volume of long positions (buy positions). As a result, the price rebounds in the opposite direction.

Exchange Rates 01.02.2021 analysis

Trading recommendations on EUR/USD and GBP/USD for February 1, 2021

Today, Britain's lending market is expected to be published, which may weaken the pound a little. This is because the volume of consumer lending is forecasted to decline by 1.2 billion pounds, while the net lending may fall from 4.1 billion pounds to 3.7 billion pounds. Meanwhile, the data on mortgage lending may soften the situation, as the number of approved mortgage loans is expected to reach 115 thousand, which is 10 thousand more than a month earlier. But the overall nature of the data is more negative than positive, which can affect the pound's exchange rate.

9:30 Universal time - UK lending market

In turn, Europe will publish its unemployment data, where its level should remain unchanged, which is unlikely to affect the rate of the euro.

10:00 Universal time - EU unemployment rate

If we analyze the current trading chart of the EUR/USD, it can be seen that the quote shows a downward interest, but it is still within the limits of 1.2050/1.2190. We can assume that this range of fluctuations will remain in the market during the day, where we can move on the principle of rebounding from the specified limits. However, we still considered the method of breaking the range as the most profitable and less risky tactic.

It is worth considering that the signal to confirm the breakdown of a particular border will occur after the price is held in the four-hour time frame.

Exchange Rates 01.02.2021 analysis

As for the current trading chart of the GBP/USD, we can see the price rebound from the area of the high (1.3750), where the natural basis still works in the market. In the case of holding the downward trend, a decline in the direction of 1.3700-1.3650 is not excluded.

If we consider the prolongation of the medium-term upward trend, it is necessary to wait for the price to hold above the level of 1.3760 in the daily time frame.

Exchange Rates 01.02.2021 analysis

Gven Podolsky
Analytical expert of InstaForex
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