empty
20.12.2023 11:23 AM
EUR/USD and GBP/USD: Trading plan for beginner traders on December 20, 2023

Details of the Economic Calendar on December 19

On Tuesday, final inflation data for the Eurozone was published, showing a slowdown to 2.4% in November. However, actual figures matched the preliminary estimate that had already been priced in. For this reason, the market ignored such crucial statistical data.

Speculators paid attention to the statement by ECB representative Andrea Enria. He noted that the question of reducing interest rates should be considered only if inflation slows down to 2.0%. Despite the decrease in inflation, it is still above this threshold. Thus, the ECB may start reducing interest rates after the Federal Reserve. This process is likely to be gradual, once again creating the prospect of a change in the interest rate disparity in favor of Europe. Therefore, the ECB's interest rate level may be higher than that of the Federal Reserve, contributing to the rise of the euro.

This image is no longer relevant

Analysis of Trading Charts from December 19

The EUR/USD currency pair completed the correction phase around the 1.0900 level, where the volume of short positions decreased. As a result, the recovery of the euro rate began, based on which the quote almost returned to the resistance level of 1.1000.

The GBP/USD pair, following the euro, rose rapidly. As a result, the quote rose above the 1.2700 level.

Economic Calendar on December 20

Today, at the opening of European platforms, inflation data in the UK was published. Consumer Price Index was expected to slow down from 4.6% to 4.3%, but actual data fell to 3.9%. Thus, the Bank of England will no longer be able to avoid the question of lowering the interest rate. The reaction of the British pound was corresponding, sharply shifting to a decline.

EUR/USD Trading Plan for December 20

For the further rise of the euro-dollar pair, the stabilization of the price above the 1.1000 level is important. This step will lead to a new wave of growth in the volume of long positions, indicating the extension of the upward trend. In the case of a possible downward scenario, traders may consider this option on the next price rebound from the resistance level of 1.1000. It is important to note that, despite the recent correction and a possible price rebound, the market maintains an upward trend, confirmed by the sequence of corrections and pullbacks.

This image is no longer relevant

GBP/USD Trading Plan for December 20

With the opening of trading in Europe, speculation about the British currency arose, triggered by the publication of inflation data. The quote momentarily loses about 70 points in value, leading to a complete restoration of short positions. In case of stabilization of the price below 1.2640, an extension of the downward cycle is possible. Otherwise, the quote will return to the 1.2700 level.

This image is no longer relevant

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.

Gven Podolsky,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD: Trading Plan for the U.S. Session on April 11th (Review of the Morning Trades)

In my morning forecast, I highlighted the level of 1.2986 and planned to make market entry decisions from that point. Let's take a look at the 5-minute chart and break

Miroslaw Bawulski 18:18 2025-04-11 UTC+2

EUR/USD: Trading Plan for the U.S. Session on April 11th (Review of the Morning Trades)

In my morning forecast, I focused on the 1.1336 level and planned to make market entry decisions based on it. Let's take a look at the 5-minute chart and analyze

Miroslaw Bawulski 18:15 2025-04-11 UTC+2

How to Trade the GBP/USD Pair on April 11? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of GBP/USD Over the past 24 hours, the GBP/USD pair moved up by 170 pips. During the night into Friday, the pound sterling continued

Paolo Greco 06:04 2025-04-11 UTC+2

How to Trade the EUR/USD Pair on April 11? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of EUR/USD On Thursday, the EUR/USD currency pair resumed its upward movement and posted a gain of more than 300 pips. As Friday began

Paolo Greco 06:04 2025-04-11 UTC+2

Trading Recommendations and Analysis for EUR/USD on April 11: Trump Raises Tariffs on China Again

The EUR/USD currency pair showed ultra-strong growth on Thursday—a move that, by now, probably surprised no one. Just as we reported that tariffs on China had been raised to 125%

Paolo Greco 03:28 2025-04-11 UTC+2

GBP/USD: Trading Plan for the U.S. Session on April 10th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.2871 level and planned to make market entry decisions based on it. Let's look at the 5-minute chart and see what happened

Miroslaw Bawulski 20:11 2025-04-10 UTC+2

EUR/USD: Trading Plan for the U.S. Session on April 10th (Review of Morning Trades)

In my morning forecast, I drew attention to the 1.1019 level and planned to make market entry decisions based on it. Let's look at the 5-minute chart to understand what

Miroslaw Bawulski 20:08 2025-04-10 UTC+2

How to Trade the GBP/USD Pair on April 10? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of GBP/USD The GBP/USD pair spent the past 24 hours rising, then falling again, and then rising again. As before, it's impossible to identify

Paolo Greco 06:49 2025-04-10 UTC+2

How to Trade the EUR/USD Pair on April 10? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of EUR/USD The EUR/USD currency pair showed strong growth and decline on Wednesday. Lately, both moves have been triggered by Donald Trump. First, news

Paolo Greco 06:49 2025-04-10 UTC+2

Trading Recommendations and Analysis for GBP/USD on April 10: Who Cares About U.S. Inflation Right Now?

On Wednesday, the GBP/USD currency pair showed mixed movements throughout the day but generally maintained a downward trend — if we can even call the current behavior a "trend." There

Paolo Greco 03:21 2025-04-10 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.