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