16.02.202109:59 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on February 16

Analysis of transactions in the EUR / USD pair

Trading volatility was rather low on Monday, so as a result, none of the support and resistance levels were tested by buyers or sellers. But today, there is a possibility that EUR / USD will trade upwards, however, it will be subjected to certain conditions.

Trading recommendations for February 16

As expected, reports on EU industrial production and foreign trade balance did not have any impact on the market. Trading volatility was also low yesterday amid President's Day in the United States.

But for today, a report on EU GDP will be published, and it will certainly influence the direction of EUR / USD. Strong figures will increase demand for the currency, while weaker-than-expected indicators will return pressure in the market.

Then, in the afternoon, Fed representatives will deliver speeches, and these will also affect market dynamics and sentiment.

For long positions:

Buy the euro when the quote reaches 1.2149 (green line on the chart), and then take profit around the level of 1.2189. EUR / USD will rally if there are good economic reports from the EU.

But keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.

For short positions:

Sell the euro after the quote reaches 1.2125 (red line on the chart), and then take profit at the level of 1.2085. Pressure on the euro may return at any moment, as the risk of a downward correction is still present, albeit less pronounced. To add to that, weak data on EU GDP will decrease demand for the currency.

Of course, before selling, it is important to make sure that the MACD line is below zero and is starting to move down from it.

What's on the chart:

The thin green line is the key level at which you can place long positions in the EUR / USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the EUR / USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

Analysis of transactions in the GBP / USD pair

Pound bulls tried to continue the upward movement during the European and American sessions, however, low market volatility restricted it. Nevertheless, two buy signals were formed at 1.3907, and all of them coincided with the location of the MACD line. All of them were also carried out according to the trend, but they did not lead to the expected growth. Although those who left positions for the Asian session today got their long-awaited profit.

Trading recommendations for February 16

GBP / USD is expected to trade upwards, especially if the quote breaks above 1.3950. But if it goes below 1.3909 instead, pressure on the pound will increase, which will inevitably lead to a drop in GBP / USD.

In any case, in the afternoon, the speeches of Fed representatives will affect market dynamics and sentiment.

For long positions:

Buy the pound when the quote reaches 1.3952 (green line on the chart), and then take profit at the level of 1.4002 (thicker green line on the chart). The market is clearly bullish so GBP / USD will certainly trade upwards.

But keep in mind that before buying, make sure that the MACD line is above zero and is starting to rise from it.

For short positions:

Sell the pound after the quote reaches 1.3909 (red line on the chart), and then take profit at the level of 1.3844. However, risks for short positions are quite high, and the drops are unlikely to be large.

Keep in mind that before selling, make sure that the MACD line is below zero and is starting to move down from it.

What's on the chart:

The thin green line is the key level at which you can place long positions in the GBP/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the GBP/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.