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Analytics and trading signals for beginners. How to trade the GBP / USD currency pair on January 18? Analysis of Friday deals. Preparation

DATE OF PUBLICATION: 2021-01-17 18:42:39 Hourly chart of the GBP / USD pair. The GBP / USD pair on Friday, January 15, began a new round of downward movement. Earlier (this can be seen in the illustration) the pair quotes fixed above the descending channel, thus, the trend changed to an upward one. Thus (since there was no cancellation of the upward trend), bull trading should have been considered. But on Friday, the quotes of the pound / dollar pair were only falling, so no buy signal was generated during the day. Perhaps it is for the best, since the movements in the pound sterling are now very strange, although this may not seem so at first glance. In other articles, we call this movement “high volatility swing”, which means quite strong movements of the pair up and down without a clear trend. But this is not a flat, as the uptrend still persists in the long term, and the pair regularly renews its 2.5-year highs. As a result, on Friday we got a situation when the pair seemed to start a new downward movement, but at the same time there was not a single signal of a trend change. The situation will remain the same on Monday. The price can continue the “swing” mode, which is very difficult to work out. It is very difficult to understand how the trend is now, at least in the short term. Fundamentally, nothing changes for the British pound. And most importantly, the foundation does not in any way clarify the technical picture, does not make it more understandable. On Friday, the UK released data on GDP for November, which showed less contraction than expected, but still contraction. In theory, this value could support the British pound, but traders once again showed their disinterest in important macroeconomic statistics. Also on this day, a report on industrial production was published, which, on the contrary, decreased in volume, contrary to forecasts. But, of course, this report had a lower priority and, moreover, it was not worked out. Tomorrow, January 18, there will be nothing interesting in either the UK or America. In the US, Trump is spending his last days in the White House, and in the UK, they are increasingly concerned about the epidemic, the third lockdown, and the “British” and “Brazilian” strains of the “coronavirus”. Thus, on this day we do not expect news and macroeconomic data. Although this still does not matter, since the pound / dollar pair continues to trade according to its own rules. As of January 18, the following scenarios are possible: 1) Buy orders are formally relevant at the moment, since the pair’s quotes had previously left the descending channel. Nevertheless, it is highly likely that a new round of the downward movement has begun in the long term (after the third unsuccessful attempt to overcome the level of 1.3700). Thus, in the coming days, a downward movement in the pair may be observed. 2) Sales have lost their relevance. And although we are now expecting a slight drop in quotations, there are no technical signals. Therefore, you need to wait one or two days for a clear trend to form and trade based on that trend and not at random. We recommend that novice traders wait a little outside the market. What is on the chart: Support and resistance price levels are the levels that are targets when buying or selling. You can place Take Profit levels near them. Red lines are 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 is 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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