23.07.202008:18 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on July 23, 2020

Trading recommendations for the EUR/USD pair on July 23

EUR/USD

Analysis of transactions

The "sell" signal presented for the European currency turned out to be wrong which caused losses to traders, but the "buy" signal following it fortunately brought back the positions, taking more than 40 points from the market.

Today, traders will focus on the report on the US labor market, as well as the number of applications for unemployment benefits in Spain and consumer confidence in the eurozone. An increase in applications after the recent surge of coronavirus infections in the United States may weaken the position of the US dollar against the euro, which will lead to a further increase in the EUR/USD pair.

• Buy positions when the quote reaches the level of 1.1588 (green line on the chart), targeting the level of 1.1624. This may occur after the release of data on the labor market in Spain and the report on consumer confidence in the eurozone. Exit the market when the quote reaches the value 1.1624.
• Sell positions when the quote reaches the level of 1.1559 (red line on the chart), targeting the level of 1.1511, which is yesterday's low, from where a new wave of growth has formed. Bad data on the consumer confidence in Germany will put pressure on the euro. Exit the market when the quote reaches the value 1.1511.

Trading recommendations for the GBP/USD pair on July 23

GBP/USD

Analysis of transactions

The "sell" signal presented for the British pound worked out positively. The first test of the level 1.2713 led to a rapid sell-off of the pound against the US dollar, which occurred after it was published that the Brexit deal between the UK and the EU would fail.

The bulls managed to raise the quote but the further increase will depend on the behavior of traders within the level of 1.2748. Good reports on orders in the UK industrial sector, as well as the speech of Bank of England member Jonathan Haskel may support the British pound.

• Buy positions when the quote reaches the level of 1.2748 (green line on the chart), targeting the level of 1.2776 (thicker green line on the chart). A good news on Brexit will push the pair higher in the trading chart, as will strong data on orders in the UK industrial sector. Exit the market when the quote reaches the value 1.2776.
• Sell positions when the quote reaches the level of 1.2722 (red line on the chart), which is today's low. Usually, on the breakdown of the lows, large sales begin, as profit is taken on long positions that have accumulated along the trend. The test of this price will lead to a fall to the level of 1.2686, where it is best to exit the market.