FX.co ★ Trading tips for novice traders in EUR/USD and GBP/USD on July 21

Details of the economic calendar last July 20

Inflation in the UK is at a new 40-year high, which exacerbates the already difficult economic situation in the country. Consumer prices rose 9.4% year-on-year in June, the highest since 1982. There is a signal that at the upcoming meeting, the Bank of England will be forced to sharply raise interest rates.

Analysis of the trading charts on July 20

EUR/USD completed its consolidation at 1.0220/1.0270 by breaking its lower border, which resulted in a local downward movement towards the previously passed support level of 1.0150.

Meanwhile, GBP/USD's correction slowed down within the area of the psychological level of 1.2000, resulting in an amplitude of 1.1950/1.2050, which indicates the process of accumulation of trading forces. This can lead to new price jumps in the pair.

Economic calendar for July 21

The key event this week is the meeting of the ECB, where rates could increase for the first time in 11 years. Analysts expect a 0.25% rise, which is good, but very little. A local reaction may occur, but quotes will return to their previous values. If the rate hike is above expectations, or the ECB hints at a more aggressive strategy, an uptrend may happen in EUR/USD.

And even though the US is also releasing a report on jobless claims, which is predicted to show a slight increase, it will be ignored because markets will focus more on the results of the ECB meeting.

Schedule:

Results of the ECB meeting - 08:15 ET

Release of US jobless claims report - 3:30 PM ET

ECB press conference - 08:45 ET

Trading idea for EUR/USD on July 21

The pair will move today depending on the results of the ECB meeting.

Based on technical analysis, it is likely that holding the price below 1.0150 will ramp up short positions, while holding the price above 1.0280 will trigger another correction.

Trading idea for GBP/USD on July 21

Breaking through 1.1950/1.2050 is the best move considering the current situation. In the H4 TF, buy if the price is above 1.2060, while sell if the price is below 1.1920.

What is shown on the trading charts?

This candlestick chart has white and black graphic rectangles, with lines at the top and bottom. Detailed analysis of each candle will show characteristics relative to a particular time period, such as opening price, closing price, maximum and minimum price.

Horizontal levels are price coordinates, relative to which a stop or price reversal may occur. In the market, these levels are called support and resistance.

Circles and rectangles are highlighted examples of where the price reversed before. They indicate horizontal lines that may put pressure on the pair in the future. The up/down arrows are reference points of where the pair could go in the future.