FX.co ★ Tips for beginner traders in EUR/USD and GBP/USD on October 18, 2022

Details of the economic calendar of October 17

Monday was usually accompanied by an empty macroeconomic calendar. Important statistics in Europe, the United Kindom, and the United States were not published.

In this regard, investors and traders monitored the incoming information and news flow.

The main financial topics discussed in the media:

The new British Chancellor of the Exchequer, Jeremy Hunt, said that Liz Truss's previously announced plans to cut taxes and increase subsidies will not be implemented. It is expected that this will allow the authorities to save about £32 billion.

This news flow is pushing the pound up, and due to the positive correlation, the euro is also growing.

Analysis of trading charts from October 17

The EURUSD currency pair has updated the high of the past week during the upward movement. As a result, a technical signal arose about a change in trading interests, which led to an increase in the volume of long positions in the euro.

The GBPUSD currency pair resumed its upward cycle, as a result of which the quote once again touched the resistance area of 1.1410/1.1525. The third consecutive convergence of the price with the area of resistance indicates a high desire of traders to keep the upward cycle in the market.

Economic calendar for October 18

Today, data on industrial production in the United States will be published, where the growth rate may slow down from 3.7% to 3.4%. These statistics may put pressure on dollar positions.

Time targeting:

US industrial production –13:15 UTC

Trading plan for GBP/USD on October 18

Stable price retention above the value of 0.9850 in the future may open the way towards the parity level. Otherwise, stagnation within the current value may lead to a price rebound in the direction of the variable level of 0.9700.

Trading plan for GBP/USD on October 18

From a technical point of view, the resistance area is still putting pressure on buyers, but this could change if the price holds above 1.1525 in a four-hour period. In this scenario, the volume of long positions may increase in the market, which will lead to a subsequent increase in the value of the pound sterling.

Until then, the scenario of a price rebound from the resistance area cannot be ruled out.

What is shown 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.