Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on July 31
Trading recommendations for the EUR / USD pair on July 31
EUR / USD
Analysis of transactions
Sell transactions opened at the level of 1.1750 did not bring much profit to traders, since the downward movement of the quote was just about 17 points. But the buy transactions, which were opened at the level of 1.1786, brought quite good profit of about 50 points.
The drop in the euro yesterday came after the release of gloomy data on unemployment in the eurozone and weak data on the labor market in Germany. However, the report on the US GDP for the 2nd quarter, which was released in the afternoon, turned out to be better than the forecast of economists, so investors gained confidence in the rapid recovery of the world economy, which led to the increased demand of the European currency.
- Open buy transactions when the quote reaches the level of 1.1895 (green line on the chart), targeting a rise to the level of 1.1935. The most important reports today are the upcoming data on the eurozone GDP, as well as the inflation rate, co confidently buy the euro if the figures turn out better than the forecasts. Take profit at the level of 1.1935.
- Open sell transactions after the quote reaches the value of 1.1862 (red line on the chart), targeting a drop to the level of 1.1825. But before selling, make sure that the data for the eurozone are much worse than the previous one, as such will scare off new buyers in the euro and lead to a decrease in quotes in the trading chart. Take profit at the level of 1.1825.
Trading recommendations for the GBP / USD pair on July 31
GBP / USD
Analysis of transactions
Sell transactions, which were opened when the quote reached the level of 1.2952, brought losses to traders yesterday. Fortunately, the succeeding buy transactions, opened when the quote reached the level of 1.2993, brought profit of about 30 points, covered the losses on the first trade.
The pound continues to rise, taking advantage of the weakness of the US dollar. Many traders are also counting on the conclusion of the Brexit trade agreement, as such will strengthen the position of the pound in the world market in the future.
- Open buy transactions when the quote reaches the level of 1.3140 (green line on the chart), targeting a rise to the level of 1.3195 (thicker green line on the chart). Take profit at the level of 1.3195.
- Open sell transactions after the quote reaches the level of 1.3105 (red line on the chart). This is because a breakout of it will lead to a rapid decline in the quotes, with which the target level will be 1.3055. Take profit when the quote reaches the level of 1.3055.
The material has been provided by InstaForex Company – www.instaforex.com