Daily Briefing, April 22 - EUR/USD & GBP/USD Trade Setups - Forex News by FX Leaders

Daily Briefing, April 22 – EUR/USD & GBP/USD Trade Setups

Posted Monday, April 22, 2019 by
Arslan Butt • 2 min read

Happy Easter, Fellas.

With the Easter holiday, the economic calendar remains light on Monday as almost all of the economies are observing Easter. Forex brokerage companies are open and offering trading services to retail clients. However, the liquidity and trading volume will be thin, so we need to be very careful with trades.

To help you out, we are going to discuss the EUR/USD and GBP/USD trade ideas. Let’s take a look.

EUR/USD – Fibonacci Retracement in Play

On Friday, EUR/USD spiked lower due to another disappointing round of PMI updates from Europe. On the one hour chart below, we can see that this behavior broke a pattern.

The direct currency pair is now facing support of around $1.1220. The closing of Doji candle right next to strong selling candle is suggesting that the sellers are exhausted now and the bulls may enter the market to buy an oversold currency pair.

The pair might face immediate resistance at $1.1245 (23.6% retracement level) and $1.1265 (50% Fibo level).

EUR/USD – Technical Levels
Support Resistance
1.1236 1.1251
1.1228 1.1258
1.1213 1.1273
Key Trading Level: 1.1243

EUR/USD – Trade Plan
The idea is to stay bullish above $1.1240 with a stop loss below $1.1220 and take profit at $1.1470. While selling is preferred below $1.1230.

GBP/USD – Triple Bottom Support

Recently, Sunday Times’ news conveyed that the senior conservative leader is set to tell the UK Prime Minister Theresa May to quit her job while the BBC stated that the opposition Labour party is pushing another Brexit referendum as a selling point for their EU election pitch. Both these news reports are portraying pessimism surrounding Brexit.

GBP/USD is facing strong support around $1.2970, the same level that supported the cable back on March 29.

The 50 periods EMA is suggesting a bearish bias of traders and is very likely to provide resistance at $1.3050. While the RSI and Stochastic remain in the selling zone.

GBP/USD – Technical Levels
Support Resistance
1.2978 1.3008
1.2965 1.3025
1.2936 1.3055
Key Trading Level: 1.2995

GBP/USD – Trade Plan
The idea is to stay bearish below $1.3050 with a stop loss above $1.3080 and take profit at $1.2975 and $1.2935.

Good luck today and enjoy the blessings of Easter.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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