FX.co ★ Trading plan for EUR/USD and GBP/USD on July 20

Inflation data in the eurozone completely matched forecasts, but since the market already took into account such a scenario a couple of weeks ago, nothing surprising happened, which left euro continuing to stagnate.

Pound, meanwhile, dipped in price, as inflation data in the UK fell from 8.7% to 7.9%. This reduces the potential for further interest rate hikes, indicating that the Bank of England may now proceed more cautiously on the monetary policy.

The market will likely remain stagnant today due to the upcoming jobless claims data in the US. Forecasts say the number of initial claims will increase by 5,000, while the number of continuing claims will rise by 3,000. Although the expected changes seem to be insignificant, they carry a negative tone, so the market's reaction will be unnoticeable.

EUR/USD consolidated at the peak of the upward trend. However, the volume of short positions increased, so the pair may fall down if the quote drops below 1.1200. Until then, the consolidation may persist in the market.

GBP/USD lost more than 200 pips during market speculation, leading to an oversold status in the intraday period. Such a scenario also prompted a local rebound, which brought the quote back to the lower boundary of the psychological level at 1.2950/1.3000. If the pair continues to trade below 1.2950, a further weakening may be seen in the market, unless the price returns above 1.3000.