FX.co ★ EUR/USD and GBP/USD: trading plan for beginners on February 16, 2023

Macroeconomic calendar from February 15

UK inflation came better than expected. It slowed down to 10.1% from 10.5% although economists had expected it to drop to 10.3%. Nevertheless, inflation is still at a high rate. However, in the wake of such a noticeable drop in the figures, the Bank of England may soon adjust its monetary policy stance. Meanwhile, the latest inflation results triggered a sell-off in GBP/USD.

The euro showed weakness after the publication of industrial production statistics in the eurozone. In November, industrial output was 2.8%. In December, it already nosedived to -1.7.%.

In the North American session, the United States delivered a report on retail sales, which logged a 6.38% rise from the previous reading of 5.89%. Economists had expected retail sales to drop to 4.5%. Clearly, the greenback strengthened.

Overview of technical charts from February 15

EUR/USD bounced from support at 1.0650 for the third straight time. Over the past seven days, the pair has traded sideways in the 1.0650/1.0800 range.

GBP/USD reversed downward and headed toward the psychological level of 1.2000 where selling volumes decreased.

Macroeconomic calendar on February 16

Today, the United States will release data on weekly jobless claims. The figures are expected to increase, which is a negative factor for the US jobs market.

Continuing Jobless Claims are set to rise to 1,695K from 1,688K.

Initial Jobless Claims are likely to advance to 200K versus 196K.

Trading plan for EUR/USD on February 16

A further price direction will get clearer after a breakout through any of the limits of the range.

If the price consolidates below 1.0650 in the 4-hour time frame, the current corrective move may go on.

Alternatively, if the quote settles above 1.0800 in the 4-hour time frame, the corrective move will stop.

Trading plan for GBP/USD on February 16

The pair is still trading sideways while under pressure from the 1.2000 level. The pair may somewhat recover after consolidation above 1.2080.

Otherwise, the downtrend will extend if the quote settles below 1.1950 in the 4-hour time frame.

What's on technical charts

The candlestick chart shows graphical white and black rectangles with upward and downward lines. While conducting a detailed analysis of each individual candlestick, it is possible to notice its features intrinsic to a particular time frame: the opening price, the closing price, and the highest and lowest price.

Horizontal levels are price levels, in relation to which a stop or reversal of the price may occur. They are called support and resistance levels.

Circles and rectangles are highlighted examples where the price reversed in the course of its history. This color highlighting indicates horizontal lines which can exert pressure on prices in the future.

Upward/downward arrows signal a possible future price direction.