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16.11.202211:20 Forex Analysis & Reviews: Tips for beginner traders in EUR/USD and GBP/USD on November 16, 2022

Details of the economic calendar of November 15

Data on the UK labor market came out worse than expected. The unemployment rate rose from 3.5% to 3.6%, while forecasts assumed previous level to remain. A negative factor in the report is also a reduction in employment by 52,000, with a forecast of 25,000.

Despite the negative factors, the pound sterling is maintaining its position in the market.

In Europe, the second estimate of GDP in the third quarter was published, which recorded growth of 2.1% in annual terms and 0.2% quarterly. These indicators fully coincided with the first estimate of GDP.

As for the US ballot count, the preliminary totals are:

House of Representatives: Democrats 209 - Republicans 217. Control requires 218 seats out of 435.

Senate: Democrats 50 - Republicans 49. Control requires 51 seats out of 100.

In some states, the second round of voting is underway, so there are no final data yet. Based on the available indicators, it becomes clear that the Senate is for the Democrats, and the House of Representatives is for the Republicans. In fact, everything will remain that way.

Exchange Rates 16.11.2022 analysis

Analysis of trading charts from November 15

The EURUSD currency pair moved closer to the subsequent resistance level of 1.0500 during the rapid upward movement. As a result, there was a reduction in the volume of long positions, where the overheated euro moved into the stage of technical pullback.

The GBPUSD currency pair strengthened its long positions after the quote moved to a stable hold above the 1.1750 level. As a result, there was a new cycle of growth of the pound sterling, where the quote reached the psychological level of 1.2000. The price change over the past day alone amounted to about 250 points, which eventually led to a technical pullback, where the 1.2000 level plays the role of resistance.

Economic calendar for November 16

At the opening of the European session, data on UK inflation were published, whose growth rate accelerated from 10.1% to 11.1%. Consequently, the Bank of England will continue to raise interest rates at the same pace.

Trading plan for EUR/USD on November 16

From a technical analysis point of view, the subsequent upward move will depend on whether buyers break through the 1.0500 resistance level. To confirm this signal, the quote must at least hold above this level in a four-hour period.

As for the transition from a pullback to a correction, this scenario will become relevant if the price stays below the level of 1.0300 in a four-hour period.

Exchange Rates 16.11.2022 analysis

Trading plan for GBP/USD on November 16

In this situation, the subsequent upward move is limited by the current level. Thus, in order for a new growth cycle to occur, the quote needs to stay above the value of 1.2050 in a four-hour or daily period. Until then, there is a risk of moving from a pullback to a full-size correction stage.

Exchange Rates 16.11.2022 analysis

What is shown 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.

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Gven Podolsky,
Analytical expert of InstaSpot
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