The value of the US dollar strengthened against its competitors yesterday. There was also an above average activity in the market, which made it possible for traders to gain profit.
In terms of the economic calendar, the United Kingdom's lending market data was initially published. The volume of consumer lending was expected to drop from 5.73 billion pounds to 5.59 billion pounds, while net lending rose from 4.3 billion pounds to 4.6 billion pounds. In turn, the number of approved mortgage loans declined from 105.32 thousand to 103.38 thousand, against the forecast of 105.00.
The statistical data was negatively received by the pound, which declined in the market against the US dollar.
Europe's unemployment data was also released, where its level remained unchanged at 8.3%.
The euro was already under pressure from sellers by the time these statistics were published.
What happened on the trading chart?
The EUR/USD pair showed a downward activity yesterday. As a result, the quote returned to the area of the pivot point 1.2050/1.2070, where market participants repeatedly reduced the volume of short positions (sell positions), which led to slow down and rebound.
The GBP/USD pair showed a logical basis again in connection with the area of the conditional high of the medium-term trend of 1.3750, where there was initially a sharp stop in the upward movement. It was then followed by the price rebound along the direction of 1.3750 ---> 1.3656, as this has already been repeated in history for several times.
Trading recommendations on EUR/USD and GBP/USD for February 2, 2021
Today, the economic calendar will publish Europe's first estimate of GDP for the fourth quarter, where the rate of economic decline may accelerate from -4.3% to -6.0%, which will negatively affect the euro.
Unemployment data is also expected to be published in Europe. Its level is expected to remain unchanged, which is unlikely to affect the euro in any way.
9:30 Universal time - UK lending market
10:00 Universal time - EU GDP
If we analyze the current trading chart of EUR/USD, it can be seen that the quote is following the area of 1.2050/1.2070, showing an active downward interest. If the price holds below the level of 1.2050, the support level will be broken. After that, sellers will actively enter the market, who will easily lower the euro rate towards the level of 1.2000.
As for the current trading chart of the GBP/USD, we can see that the quote still adheres to the sideways movement at the high of the mid-term trend, where the coordinates of 1.3650/1.3750 serve as the borders.
If the price is held outside of a particular border in a four-hour period, it can point the way to the next movement in the market.
Traders should continue to move on the principle of rebound as long as the borders are not broken.
