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Analytics and trading signals for beginners. How to trade the GBP / USD currency pair on January 13th? Analysis of Tuesday deals. Preparation

DATE OF PUBLICATION: 2021-01-12 21:49:32 Hourly chart of the GBP / USD pair. The GBP / USD pair on Tuesday, January 12, continued its upward movement, which began a day earlier after the price rebounded from the lower border of the descending channel. Thus, by the end of the trading day, the quotes of the pair rose to the upper border of the same channel and fixed above it. The trend changed to an upward one and even a buy signal was formed, which, however, is weak, therefore, it is not recommended for novice traders to work it out. Weak – because at the time of its formation the pair had already gone up about 150 points. Accordingly, there are not so many chances that the pair will go another 50-100 points without a downward correction. Thus, in the current situation, we would recommend waiting for the turn of the already downward correction, after which a new buy signal is formed. However, even if newbies opened buy deals on this signal, now they are in profit of about 30 points, which is also not bad. So far, it looks like a long-term uptrend will resume. Now the pound / dollar pair raises a lot of questions, and even more questions are raised about the validity of the further growth of the British pound. But here you have to choose from two options: either not to trade at all, or to trade in the state of affairs that is. Fundamentally, a rather important and unexpected event has occurred for the British pound today. The head of the Bank of England, Andrew Bailey, made a speech, one of the theses of which was “with negative rates there will be many difficulties and problems.” Markets immediately interpreted this information as that in the near future the Bank of England will not lower the rate. That is, it will not soften the monetary policy and immediately rushed to buy the pound sterling. But if this is the only reason for buying the pound, then tomorrow a new downward movement may begin. “The foundation”, from our point of view, remains not on the side of the British currency. On Wednesday, January 13, there are no important events planned in the UK, but there were those on January 12, and Andrew Bailey still spoke. Thus, novice traders will again have to trade based solely on technical factors. The only thing is inflation in the USA. It can affect the course of trading. But the chances of this again are not great. As of January 13, the following scenarios are possible: 1) Buy orders again became relevant, as the pair quotes left the descending channel. Thus, it is now recommended to consider long positions, but after a downward correction cycle, the indicator discharges to zero and a new buy signal is formed. Targets – resistance level 1.3682 (will be revised tomorrow morning). 2) Selling has lost its relevance. Now you need to wait for the formation of a new downward trend in the pair or the completion of the current upward trend. Of course, you can try to play on the correction, which should start for the pair in the near future, but it is always risky to trade against the trend. And the MACD indicator may not start discharging in parallel with the price decline, thus forming a false sell signal What is on the chart: Price levels of support and resistance – levels that are targets when opening buy or sell. You can place Take Profit levels around them. Red lines – channels or trend lines that display the current trend and show which direction it is preferable to trade now. Up / down arrows – show when reaching or overcoming which obstacles to trade for an increase or decrease. MACD – a histogram and a signal line, the crossing of which is a signal to enter the market. Recommended for use in conjunction with trend plots (channels, trend lines). Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement. Beginners in the Forex market should remember that every trade cannot be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time. Material provided by InstaForex – Source – InstaForex

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