Details of the economic calendar on February 17
Friday's U.K. retail sales data reflected a slowdown in the rate of decline from -6.1% to -5.8%. However, it should be taken into account that the previous data was revised negative from -5.8% to -6.1%.
The pound declined amid the statistical data.
Analysis of trading charts from February 17
EURUSD locally dropped below the level of 1.0650, but the quote did not manage to hold on to the new values. As a result, a pullback occured, which brought the quote back above the previously passed level. Based on the dynamics during the pullback period, there was a sharp reduction in the volume of short positions in the euro. Thus, the breakdown of the 1.0650 level might have been false.
GBPUSD failed to stay below the value of 1.1950. As a result, there was a reduction in the volume of short positions on the market, leading to a slowdown in the downward cycle, which caused a price pullback.
Economic calendar for February 20
Today, the macroeconomic calendar is empty, the publication of important statistics is not expected. It is worth noting that today is a non-working day in the United States on the occasion of a national holiday. For this reason, banks and stock exchanges are not working, which may adversely affect trading volumes.
EUR/USD trading plan for February 20
If the current pullback leads to strengthening of long positions in the euro, it may return the quote to the local high of the past week.
As for the downside scenario, the quote must first return below the level of 1.0650 and stay there in the daily period. In this case, the breakdown of 1.0650 will be confirmed on the market, which will open the way towards 1.0500.
GBP/USD trading plan for February 20
The area of the 1.2000 support level still puts pressure on sellers, despite the fact that it was locally broken by the price. Presumably, the current pullback-stagnation will play the role of accumulation of trading forces. This, in turn, will lead to new price hikes.
As for the signal values, the boundaries of the deviation from the 1.2000 psychological level will be 1.1950 and 1.2050. These values are highly likely to become the starting point for speculators. Note that the quote needs to hold beyond this or that value in the daily period.
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.
