03.08.202008:36 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on August 3

Trading recommendations for the EUR / USD pair on August 3

Analysis of transactions

The first signal for the bottom of the euro at the price level of 1.1895 did not lead to a rise, but the sell signal, which arose after the price reached the level of 1.1862, turned out more profitable since such led to a fall to the level of 1.1825, the entry points of which are clearly visible in the chart.

The European currency declined on Friday due to a larger contraction of the Eurozone economy in the second quarter, as well as on the recently released good data on US spending, which only strengthened the position of the dollar against the euro.

• Thus, today, open buy positions when the quote reaches the level of 1.1803 (green line on the chart), targeting a rise to the level of 1.1862. Good data on manufacturing activity in the eurozone will help raise demand for the European currency. Take profit at the level of 1.1862.
• Sell positions after the quote reaches the level of 1.1763 (red line on the chart), targeting a drop to the level of 1.1719. But before selling, wait for the report on manufacturing activity in France and Germany, as only poor data will lead to a decreased demand for the European currency. Take profit at the level of 1.1719.

Trading recommendations for the GBP / USD pair on August 3

Analysis of transactions

The movement towards the level of 1.3140, gave about 25 points of profit, after which the GBP / USD pair turned around and began to decline amid profit-taking of large players, which usually occurs at the end of the month.

The main reason for the recent rise of the pound is the decreasing demand for the US dollar amid problems in the United States. Traders are not yet very concerned about the Brexit trade agreement and the likelihood of its conclusion.

• Buy positions when the quote reaches the level of 1.3113 (green line on the chart), aiming a rise to the level of 1.3167 (thicker green line on the chart). However, such a scenario can only happen if data on manufacturing activity in the UK turns out positive. Take profit at the level of 1.3167.
• Sell positions after the quote hits the level of 1.3070 (red line on the chart), a breakout of which will lead to a rapid intraday decline in the British pound. Weak data on manufacturing activity in the UK will also contribute to it. Take profit at the price level of 1.3023.