FX.co ★ Tips for beginner traders in EUR/USD and GBP/USD on May 23, 2022

Details of the economic calendar from May 20

UK retail sales dropped by 4.9% YoY in April replacing 1.3% growth in March. Analysts assumed a decline of 7.2%. This slight discrepancy in the forecasts delayed the weakening of the pound sterling.

Analysis of trading charts from May 20

The EURUSD currency pair has slowed down the corrective move near the upper border of the previously broken flat 1.0500/1.0600. This led to a slight reduction in the volume of long positions, while upward interest is still taking place in the market.

The GBPUSD currency pair, after a short stop, overcame the resistance level of 1.2500. This step led to the prolongation of the corrective move from the support level of 1.2155.

Economic calendar for May 23

Monday is traditionally accompanied by a blank macroeconomic calendar. Nevertheless, stable information and news flow will continue to play on the nerves of speculators, which allows new jumps in the market.

Trading plan for EUR/USD on May 23

In this situation, a signal about the transition to the stage of an oblong correction will appear at the moment the price holds above the value of 1.0636 for at least a four-hour period. Until then, the risk of a price rebound towards 1.0500 remains.

Trading plan for GBP/USD on May 23

The first signal about the formation of an elongated correction was received upon the breakdown of the level of 1.2500. To confirm it, the quote needs to stay above the control value in the daily period. In this case, buyers will have high chances of moving towards the values of 1.2635–1.2700.

Otherwise, there will be a pullback below the level of 1.2500, followed by stagnation.

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.