17.11.202008:58 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on November 17

Analysis of transactions in the EUR / USD pair

The euro failed to grow actively yesterday, mainly due to the absence of economic data, except for Italy's CPI, which did not show anything new. The statements from the European Central Bank were also not noteworthy, so long positions in the EUR / USD pair saw only losses. Short positions from the level of 1.1836 also did not bring plenty of profit, as the quote only moved 15 pips down. This suggests that the EUR / USD pair is in a side channel, and is likely to remain there today.

Trading recommendations for November 17

Data on US retail sales is scheduled to be published today, and if the report indicates a decline in the index, the euro will rise with renewed vigor, which will lead to new monthly highs in the EUR / USD pair. But if the data turns out disappointing, the pair will remain in a sideways channel, which it has been in since the beginning of this week. In any case, euro bulls are still dominating the market, so it is better to bet on the further strengthening of the pair.

• Open a long position when the euro reaches a quote of 1.1870 (green line on the chart) and then take profit at the level of 1.1915. 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 1.1847 (red line on the chart) and then take profit around the level of 1.1800. Sell the euro only if economic reports from the US come out better than the forecasts.

Analysis of transactions in the GBP / USD pair

Demand for the pound rose in the market yesterday, so as a result, the GBP / USD pair moved 40 pips upward. However, afterwards, short positions from 1.3214 dragged the quote down to 1.3169. It seems that the lack of economic data and unimproved outlook for the UK economy is a deterrent factor even for speculative players. The pound needs good news to maintain the upward trend.

Trading recommendations for November 17

The position of the pound shall rely today on the statements from the Bank of England. If its governor, Andrew Bailey, leaves key rates unchanged, the British pound will continue to rise. But if he resorts to negative rates, the pound may come under pressure.

• Open a long position when the quote reaches the level of 1.3230 (green line on the chart) and then take profit around the level of 1.3281 (thicker green line on the chart). If the Bank of England leaves key rates unchanged, or if there's good news over Brexit, demand for the British pound may increase.
• Open a short position when the quote reaches the level of 1.3208 (red line on the chart). A breakout of this range will bring pressure back to the pair, which will push the pound towards the level of 1.3169.