Support & Resistance

Trading plan for EUR/USD and GBP/USD on October 25

Rishi Sunak is now the new UK Prime Minister. Many already expected this as he is the most suitable for the role, as well as the most competent person to lead the country out of crisis.

So far, the news has not affected markets in any way, partly because investors are looking forward to Sunak’s speech, which will take place after his meeting with the king and official entry into office. It is possible that in his first official speech, he will make a number of statements addressing the plans to correct the situation in the economy. The nature of which will determine the mood of investors. If this does not happen, the market will continue to stand still.

The new prime minister has yet to form a cabinet, so most likely, some policy statements will follow only towards the end of the week.

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EUR/USD maintains an upward trend, stably trading above 0.9850. To prompt a further growth, traders need to push euro beyond 0.9900. That will bring EUR/USD towards parity. Otherwise, price may fluctuate around 0.9850, which could eventually turn into a flat.

Once again, GBP/USD bounced back from 1.1410/1.1525, increasing demand for dollar positions. But even if interest is fluctuating, there are still chances for an upward move in pound. Staying above 1.1410 in the four-hour (H4) chart is enough to encourage long positions in the pair. Until then, the odds between buyers and sellers are roughly equal.

The material has been provided by InstaForex Company – www.instaforex.com


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