Here are the details of the economic calendar from June 18:
According to the UK National Statistics Office, May retail sales declined by 1.4%. Sales surged by 24.6% in annual terms, but this is the effect of a low base, which is when the growth rate of an economic indicator is explained by its extremely low starting indicator.
The data from the UK resulted in the pound's further weakening.
Analysis of trading charts from June 18:
Last Friday, the EUR/USD pair managed to prolong the previously set downward trend in the market. As a result, the quote declined within the predicted area of 1.1960, where there was a reduction in the volume of short positions (sell positions).
The trading recommendation on June 18 considered the downward trend while indicating a possible pivot point for fixing sell positions.
The GBP/USD pair declined by more than 300 basis points in just two and a half days, which is considered a strong price change and leads to an oversold status in the market.
To simply put it, the pound has lost quite a lot in value in a short period of time and this leads to massive attention from speculators, who can turn the situation in their favor by buying out a cheap currency.
Trading recommendation for EUR/USD and GBP/USD on June 21, 2021
Today's economic calendar is empty like almost every Monday. Therefore, traders are closely monitoring the information flow in the media for unforeseeable news, and also trade on the basis of technical analysis.
Looking at the EUR/USD trading chart, it can be seen that the price area of 1.1860 is still putting pressure on sellers, which leads to a slowdown in the decline and amplitude within the range of 1.1845/1.1885.
We can assume that the current stagnation will be used as an accumulation of trading forces, leading to a local acceleration in the market. Therefore, the best trading tactic is considered to be the method of breaking one or another border of the set range.
As for the trading chart of the GBP/USD, its situation is the same as its European counterpart, where the quote has a slowdown in the downward course with the formation of the price range of 1.3780/1.3830.
Trading will be carried out in a similar way based on the method of breaking a particular border with entering the market on a downward impulse.
