17.02.202210:10 Forex Analysis & Reviews: Trading plan for starters of EUR/USD and GBP/USD on February 17, 2022

Here are the details of the economic calendar for February 16:

Britain's inflation data reflected the growth of consumer prices from 5.4% to 5.5%, which is likely to become an argument for another increase in the refinancing rate by the Bank of England. This news has become an impulse for the pound's growth.

As for the EU, their industrial production was published, where a decline of 1.4% was replaced by an increase of 1.6%. It is worth noting that production was expected to decline, thus the divergence of expectations played into the hands of the European currency.

This was followed by the US retail sales data during the American trading session, the growth rate of which slowed down from 16.71% to 12.96%. The situation was slightly softened by the industrial production data, which instead of slowing down, reflected their growth from 3.80% to 4.08%.

Analysis of trading charts from February 16:

The EUR/USD pair in the pullback stage returned the quote to the previously broken level of 1.1400. This step led to a regrouping of trading forces after a rapid decline last week. As a result, the 1.1400 level acts as resistance, which positively affects the volume of short positions.

Despite local bursts of activity, the GBP/USD pair has been moving within the side channel of 1.3500/1.3600 for the second week in a row. The long-term price movement in a closed amplitude indicates the process of accumulation of trading forces, which will eventually lead to a natural acceleration in the market.

It is worth noting that a sideways movement of the Doji type on the daily chart signals a high degree of uncertainty among market participants. Thus, a burst of activity at the end of the flat is guaranteed in the market.

February 17 economic calendar:

The weekly data on applications for the US unemployment benefits will be released today, which is expected to decline. This is a positive factor for the US labor market.

Statistics details:

The volume of initial applications for benefits may fall from 223 thousand to 219 thousand.

The volume of repeated applications for benefits may fall from 1,621 thousand to 1,605 thousand.

Time targeting

Applications for US unemployment benefits – 13:30 Universal time

Trading plan for EUR/USD on Feb 17:

Based on the price behavior within the control level of 1.1400, it can be assumed that the downward interest is still relevant in the market. The rebound from resistance returned the quote below the level of 1.1350, which leaves a chance for a full recovery from the recent pullback. The main signal about the prolongation of the downward cycle will appear if the price is kept below the level of 1.1260.

Traders will consider an alternative market development scenario if the price holds above the level of 1.1400 in a four-hour period.

Trading plan for GBP/USD on Feb 17:

The quote approached the upper border of the side channel once again. This led to a reduction in the volume of long positions and, as a result, to a slowdown in the upward movement from the beginning of the week. In this situation, traders are still considering the trading tactics of breaking through one or another control level of the relative flat.

In this regard, buy positions will be valid after holding the price above 1.3630 in a four-hour period, and sell positions would be valid after holding the price below 1.3480 in a four-hour period.

What is reflected in the trading charts?

A candlestick chart view is graphical rectangles of white and black light, with sticks on top and bottom. When analyzing each candle in detail, you will see its characteristics of a relative period: the opening price, closing price, and maximum and minimum prices.

Horizontal levels are price coordinates, relative to which a stop or a price reversal may occur. These levels are called support and resistance in the market.

Circles and rectangles are highlighted examples where the price of the story unfolded. This color selection indicates horizontal lines that may put pressure on the quote in the future.

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