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FX.co ★ Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on February 23

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on February 23

Analysis of transactions in the EUR / USD pair

Three signals appeared in the market yesterday. The first one is to sell at 1.2108, but it had to be ignored because the MACD line, during that time, was in the oversold zone. Then, the next signal is to again sell the euro, and this time, the MACD line was moving towards the negative zone, so EUR / USD was able to move down by about 15 pips. As for the third and last signal, which is to buy at 1.2140, it had to be ignored again because the MACD line was in the overbought area, which limited the upward potential of the pair.

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on February 23

Trading recommendations for February 23

Euro will continue to grow if there are good economic reports from the EU. For example, strong CPI for January will lead to a rally towards new all-time highs in EUR / USD.

But in the afternoon, the Fed Chairman Jerome Powell will speak in front of the Congress, and a report on US consumer confidence will be published. Good data may lead to a decline in EUR / USD.

For long positions:

Buy the euro when the quote reaches 1.2181 (green line on the chart), and then take profit around the level of 1.2224. EUR / USD will rally if there are very good economic reports from the EU.

Keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.

For short positions:

Sell the euro after the quote reaches 1.2154 (red line on the chart), and then take profit at the level of 1.2104. Pressure on the euro may return if inflation in Europe is lower than the forecast, and if data from the US is much better than expected.

But of course, before selling, it is important to make sure that the MACD line is below zero and is starting to move down from it.

See also: Start Forex trading with a deposit starting from 1 USD.
Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on February 23

What's on the chart:

The thin green line is the key level at which you can place long positions in the EUR / USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the EUR / USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

Analysis of transactions in the GBP / USD pair

Three signals appeared in the market yesterday, but only one was successful. In fact, the first sell signal at 1.3998 was wrong, since the MACD line, at that time, was in the negative zone, which limited the downward potential of the pound. Then, the situation is similar with the buy signal at 1.4033, but this time, the MACD line was in the overbought area. Only the third buy signal managed to push the price up by 50 pips, almost reaching 1.4091.

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on February 23

Trading recommendations for February 23

A report on the state of the UK labor market will be released today, and it could set the tone of trading today. To put it more precisely, a decrease in jobless claims and unemployment rate will push demand for the pound up. Accordingly, a weaker-than-expected data will lead to a decline in GBP / USD.

For long positions:

Buy the pound when the quote reaches 1.4090 (green line on the chart), and then take profit at the level of 1.4144 (thicker green line on the chart). GBP / USD will trade upwards if there are good economic reports from the UK.

Keep in mind that before buying, make sure that the MACD line is above zero and is starting to rise from it.

For short positions:

Sell the pound after the quote reaches 1.4055 (red line on the chart), and then take profit at the level of 1.3989. It is not a good idea to trade against the trend, but a break below 1.4055 may lead to a good downward correction, especially in case of weak data on the UK labor market.

Keep in mind that before selling, make sure that the MACD line is below zero and is starting to move down from it.

Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on February 23

What's on the chart:

The thin green line is the key level at which you can place long positions in the GBP/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the GBP/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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