Hot forecasts and trading signals for the EUR/USD and GBP/USD pairs on April 22



As we expected, the euro/dollar pari could not overcome the lower border of the side channel on the hourly chart on April 21. There was a rebound from the 1.0817 support line, an upward movement that ended near the Kijun-sen and Senkou Span B lines, as we predicted. Then there was a rebound from these lines and a downward movement began. Therefore, the side channel now remains relevant, and, accordingly, the movement inside this channel, between its upper and lower borders, may continue for some time. Based on all of the above, we have two trading ideas for April 22:

1) We expect quotes to fall, at least, to the area of 1.0817, from which there were rebounds earlier. Thus, those traders who are in shorts can stay in them for this purpose. If this level is exceeded, you are advised to maintain sales with the target of 1.0793.

2) It is very likely for quotes to rebound from the 1.0817 level. If it happens, the pair will continue to trade inside the side channel. Therefore, in this case, traders are advised to buy the euro in order to get the Senkou Span B line (1.0878). The potential to take profit in this case will again be around 60 points.



The GBP/USD pair continues to move down and, in accordance with yesterday's forecast, fell after breaking the level of 1.2388 to the support level of 1.2276. Then the upward correction began. Therefore, correctional movement with the target of 1.2388 is possible on April 22, however, it is unlikely for the pair to be able to work out this level. We believe that the downward movement is more likely to continue today. Thus, the current intraday picture suggests the following trading ideas:

1) Overcoming the support level of 1.2276 could provoke an even greater drop in pound's quotes. In this case, we recommend selling the pair while aiming for the support area of 1.2198 - 1.2216. If it is done without any problems, you are advised to sell positions with the target of 1.2147.

2) Rebounds from important levels and support areas are possible, however, in the current environment, we consider it too risky to open longs on a strong downward trend. Thus, in this situation, we advise you to only consider purchases above the downward trend line. The target is 1.2629.

We highlight the UK inflation data among the important macroeconomic events today. Although in general we believe that traders will continue to ignore the macroeconomic background.

The material has been provided by InstaForex Company -