19.07.202310:55 Forex Analysis & Reviews: EUR/USD and GBP/USD: Trading plan for beginners on July 19, 2023

Details of the economic calendar on July 18

Statistical data on the United States turned out to be slightly different than expected. The growth rate of retail sales slowed down to 1.5% instead of the predicted 1.1%, indicating a decrease in consumer activity. However, industrial production did not meet expectations, showing a negative result of -0.4% instead of the expected growth. Nevertheless, retail sales are more significant and serve as a better indicator for assessing the overall service sector.

Analysis of trading charts from July 18

EUR/USD exchange rate has once again declined to the level of 1.1200, indicating stagnation in the current upward cycle.

GBP/USD continued to form a correction and eventually broke below the level of 1.3000.

Economic calendar for July 19

With the opening of the European session, inflation data for the United Kingdom was published. The growth rate of consumer prices slowed down from 8.7% to 7.9%, which was lower than the expected 8.3%. This sharp change in the inflation level led to a decrease in the value of the British pound, as expectations regarding the Bank of England's interest rate may be revised based on this information.

EUR/USD trading plan for July 19

In this situation, it is recommended to use the outgoing impulse method within the framework of technical analysis, taking into account the current market stagnation.

Specifically:

1. The upward scenario assumes maintaining the price above the level of 1.1250. In this case, a sequential increase in the value of the euro is possible, supporting the current trend.
2. The downward scenario will be considered in case the price stably remains below the level of 1.1200 in the four-hour period. In this case, a corrective movement may occur in the market.

GBP/USD trading plan for July 19

With the opening of the European session, market speculation was observed due to inflation data in the United Kingdom. This led to sharp price changes, resulting for the pound sterling to fall below 1.2950. If the price remains steadily below this value, further depreciation of the exchange rate is possible. However, it should be noted that in the short-term time periods, technical signals of oversold pound sterling may occur.

What's on the charts

The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.

Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.

Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset's price in the future.

The up/down arrows are landmarks of the possible price direction in the future.