Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on November 2

Analysis of transactions in the EUR / USD pair

Euro bulls tried to turn the market into their direction after a series of good economic reports, particularly on the more active growth of the European economy in the 3rd quarter of this year. However, it wasn't that successful because in the morning, short positions from the level of 1.1671 led to a decrease in the euro by about 30 pips.

analytics5f9f9f6fae4c1.jpg

Trading recommendations for November 2

Today, the most notable report will be the latest statistics on EU production activity, on the basis of which it will be possible to conclude whether this sector will be able to grow strongly in the 4th quarter of this year. Good data may lead to strengthening of the euro within the day.

analytics5f9f9f778791b.jpg

  • Open a long position when the euro reaches a quote of 1.1661 (green line on the chart), and then take profit at the level of 1.1716. However, growth will only occur if good reports come out on EU production activity.
  • Open a short position when the euro reaches a quote of 1.1631 (red line on the chart, and then take profit around the level of 1.1579. Trade according to the trend, most especially if bad economic data comes out.

Analysis of transactions in the GBP / USD pair

Long positions from the level of 1.2931 brought good profit, about 20 pips from the market. Then, the next buy transactions were successful as well, especially since the quote managed to reach the target level of 1.2982.

analytics5f9f9f7eb7b31.jpg

Trading recommendations for November 2

There is still not much progress on the trade agreement between the UK and the EU. Aside from that, Britain is again under a lockdown, which heightens the chances of a downturn in the UK economy, and accordingly, a strong decline in the British pound. A weak data on UK manufacturing activity will add pressure on the GBP / USD pair.

analytics5f9f9f869d99a.jpg

  • Open a long position when the quote reaches the level of 1.2931 (green line on the chart), and then take profit around the level of 1.2982 (thicker green line on the chart).
  • Open a short position when the quote reaches the level of 1.2900 (red line on the chart), and then take profit at least at the level of 1.2852. Bad news on Brexit, as well as weak data on the UK manufacturing sector, will continue the downward trend in the GBP/USD pair.
The material has been provided by InstaForex Company - www.instaforex.com