15.12.202008:45 Forex Analysis & Reviews: Trading recommendations for GBP/USD and EUR/USD on 12/15/20

Past review of GBP/USD pair

Traders were surprised with the pound's upward movement yesterday, whose scale was approximately 215 points.

What was the impetus for the upward interest?

As before, speculators move on a basis of the information flow associated with Brexit trade negotiations, where they actively discussed a possible positive result and the UK's concessions to Europe regarding the "equal playing field".

What happened on the trading chart?

The new trading week began with a huge price gap of about 145 pips, primarily due to the positive Brexit information noise flow over the weekend. European traders supported the upward trend, as a result of which the pound continued to strengthen up to the level of 1.3444. Such an impressive price change in the market led to the pound's local overbought, which corrected the rate towards the level of 1.3300.

The British currency began to decline since the beginning of the European session, where the scale already reached 185 points by the American session, which is considered a very large price change.

Past review of EUR/USD pair

The Euro partially repeated the dynamics of the pound in relation to the upward interest, but the volatility was much less.

What was published on the economic calendar?

Europe's industrial production data was published, where they predicted a slowdown in the decline from -6.8% to -4.4%, but the result of the data came out better than expected -3.8%. However, there was no market reaction, since all traders were working on the Brexit information flow that time and the value of the euro and pound were strengthening.

What happened on the trading chart?

Initially, there was a price gap of 20 points, after which European traders picked up buy positions and pulled the euro towards the level of 1.2176, where last week's local high was updated. At the end of the day, the quote remained at the level of 1.3150.

Trading recommendation for GBP/USD on December 15

We do not have the best data on the UK labor market for today. The unemployment rate is expected to rise from 4.8% to 5.1%, which may negatively affect the pound's exchange rate.

At the same time, we should not forget about the Brexit information flow, where a group of British and European negotiators continue to work on a trade deal. Any information about this can affect the rate of the pound sterling.

Positive Brexit news leads to a stronger pound, while negative Brexit news leads to a weaker pound.

In terms of technical analysis, a significant range of 1.3310/1.3350 can be seen, wherein the quote develops. If the price stays in one place for too long, it can lead to local surge in activity, where the method of breaking a particular border of the range is considered as the best trading tactic.

- Buying a currency pair at a price above the level of 1.3355, with the prospect of moving to 1.3400 is recommended.

- Selling the currency pair at a price below the level of 1.3300, with the prospect of moving to 1.3265-1.3220 is recommended.

Trading recommendation for EUR/USD on December 15

Looking at today's economic calendar, there is only data on the volume of US industrial production, where the decline rate is expected to slow down from -5.3% to -5.0%.

As for the market analysis, price fluctuations at the conditional peak of the medium-term upward trend can be seen. A price consolidation above 1.2180 in a four-hour time frame will lead to the euro's further strengthening towards 1.2250.

The overbought factor of the Euro still remains in the market. Therefore, we should not exclude a possible correctional movement, if there will be no price consolidation above 1.2180.