FX.co ★ EUR/USD and GBP/USD: Trading plan for beginner traders on October 23, 2023

Details of the Economic Calendar on October 20

Retail sales in the UK fell by 0.9% month-on-month in September, contradicting economists' expectations, who had predicted a drop of only 0.1%. These negative data became an additional factor contributing to the continued decline of the British pound at the time of their publication.

Analysis of Trading Charts from October 20

Consecutive touches of the resistance zone around 1.0600/1.0620 on the EUR/USD pair led to a reduction in the volume of long positions. This ultimately caused a market standstill, followed by a price rebound.

The GBP/USD currency pair exhibited high volatility during Friday's trading, with the exchange rate initially dropping to the low of the downward cycle, then rebounding above the 1.2150 level.

Economic Calendar on October 23

As usual, Monday is accompanied by an empty macroeconomic calendar. The publication of important statistical data in the European Union, the United Kingdom, and the United States is not expected.

In this context, investors and traders will likely rely on incoming news flows to make decisions in the market.

EUR/USD Trading Plan for October 23

The volume of short positions may continue to grow after price stabilization below the 1.0560 level. In such a case, a movement towards 1.0530–1.0500 is possible. An alternative scenario suggests that the price will fluctuate within the range between 1.0565 and 1.0600.

GBP/USD Trading Plan for October 23

In this situation, if the price settles above the 1.2150 level, it may trigger a subsequent increase in long positions. However, the clearest signal for an upward trend will only be visible after surpassing the 1.2180 level. Until that point, the possibility of a price reversal followed by a resumption of the downward trend should be taken into account.

What's on the charts

The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.

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

Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset's price in the future.

The up/down arrows are landmarks of the possible price direction in the future.