empty
16.05.2022 10:29 AM
Tips for beginner traders in EUR/USD and GBP/USD on May 16, 2022

Details of the economic calendar from May 13

EU industrial production data showed a decline of 0.8%, with a forecast of -1.0%. Despite a slight discrepancy in indicators, the European currency remained under pressure due to the fact that previous indicators were revised for the worse.

Analysis of trading charts from May 13

The EURUSD currency pair slowed down the downward move after the price approached the 2016 bottom. This led to a reduction in the volume of short positions and, as a result, a pullback of about 70 points.

On the trading chart of the daily period, there is an attempt to prolong the downward trend. In the future, this movement may lead to a breakdown of parity.

The GBPUSD currency pair, in the stage of a pullback from the variable pivot point of 1.2155, returned to the area of the level of 1.2250, where there was a slowdown. This step indicates the desire of sellers to resume the decline.

On the trading chart of the daily period, a gradual prolongation of the medium-term downward trend is observed.

This image is no longer relevant

Economic calendar for May 16

Monday is traditionally accompanied by a blank macroeconomic calendar. Nevertheless, stable information and news flow will continue to play on the nerves of speculators, which allows new jumps in the market.

Trading plan for EUR/USD on May 16

In this situation, the pullback was replaced by stagnation, where the values of 1.0350/1.0420 serve as variable boundaries of the amplitude. The optimal trading strategy is considered to be a breakdown of one or another stagnation border.

We concretize the above into trading signals:

Buy positions on the currency pair are taken into account after holding the price above the value of 1.0450 with the prospect of a move to 1.0500.

Sell positions should be considered after keeping the price below the local low of 2016, at 1.0325.

This image is no longer relevant

Trading plan for GBP/USD on May 16

Despite the slowdown, the pullback stage is still relevant in the market. In order for the downward cycle to resume, the quote must first return to the pivot point of 1.2150. This price move will indicate an increase in the volume of short positions, which will lead to the breakdown of the variable support and the trend prolongation.

An alternative market development scenario considers the price transition from the pullback stage to a full-scale correction. This movement can be indicated by a long stay of the price above 1.2250 in the daily period.

This image is no longer relevant

What is reflected in the trading charts?

A candlestick chart view is graphical rectangles of white and black light, with sticks on top and bottom. When analyzing each candle in detail, you will see its characteristics of a relative period: the opening price, closing price, and maximum and minimum prices.

Horizontal levels are price coordinates, relative to which a stop or a price reversal may occur. These levels are called support and resistance in the market.

Circles and rectangles are highlighted examples where the price of the story unfolded. This color selection indicates horizontal lines that may put pressure on the quote in the future.

The up/down arrows are the reference points 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

How to Trade the GBP/USD Pair on March 31? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades 1H Chart of GBP/USD The GBP/USD pair traded sideways on Friday, unlike the EUR/USD pair. And that's rather strange. For several weeks now, the British pound

Paolo Greco 03:21 2025-03-31 UTC+2

How to Trade the EUR/USD Pair on March 31? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades 1H Chart of EUR/USD On Friday, the EUR/USD currency pair once again traded higher. We can't say that macroeconomic events justified this movement. At this point

Paolo Greco 03:21 2025-03-31 UTC+2

GBP/USD: Trading Plan for the U.S. Session on March 28th (Review of Morning Trades)

In my morning forecast, I focused on the level of 1.2964 and planned to make market entry decisions based on it. Let's look at the 5-minute chart and break down

Miroslaw Bawulski 18:54 2025-03-28 UTC+2

EUR/USD: Trading Plan for the U.S. Session on March 28th (Review of Morning Trades)

In my morning forecast, I highlighted the level of 1.0801 and planned to base my market entries on it. Let's look at the 5-minute chart to see what happened

Miroslaw Bawulski 18:52 2025-03-28 UTC+2

How to Trade the GBP/USD Pair on March 28? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of GBP/USD On Thursday, the GBP/USD pair also traded higher—and quite strongly. Despite the release of a reasonably solid Q4 GDP report

Paolo Greco 06:05 2025-03-28 UTC+2

How to Trade the EUR/USD Pair on March 28? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of EUR/USD The EUR/USD currency pair rose to the 1.0804 level on Thursday. Naturally, such an unexpected and relatively strong rise in the euro

Paolo Greco 06:05 2025-03-28 UTC+2

Trading Recommendations and Analysis for GBP/USD on March 28: The Pound Keeps Swinging

The GBP/USD currency pair showed a powerful upward movement on Thursday. Naturally, the catalyst was once again Donald Trump, who imposed new 25% tariffs on all automobile imports

Paolo Greco 02:47 2025-03-28 UTC+2

Trading Recommendations and Analysis for EUR/USD on March 28: Trump's Tariffs and GDP

On Thursday, the EUR/USD currency pair surged sharply without breaking the prevailing downtrend of recent days. Valid reasons contributed to the dollar's decline after Donald Trump announced new tariffs

Paolo Greco 02:47 2025-03-28 UTC+2

GBP/USD: Trading Plan for the U.S. Session on March 27th (Review of Morning Trades)

In my morning forecast, I focused on the 1.2916 level and planned to make trading decisions based on it. Let's look at the 5-minute chart and see what happened

Miroslaw Bawulski 17:56 2025-03-27 UTC+2

EUR/USD: Trading Plan for the U.S. Session on March 27th (Review of Morning Trades)

In my morning forecast, I focused on the 1.0769 level and planned to make trading decisions based on it. Let's take a look at the 5-minute chart and see what

Miroslaw Bawulski 17:53 2025-03-27 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.