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Forex Traiding

Analytics and trading signals for beginners. How to trade the GBP / USD currency pair on January 25? Analysis of Friday deals. Preparation

DATE OF PUBLICATION: 2021-01-24 22:59:20 Hourly chart of the GBP / USD pair. The GBP / USD pair on Friday, January 22, quite unexpectedly began to correct, although after breaking the level of 1.3700 it would be more logical to see the upward movement continue. However, market participants again felt the need to roll back down a little. As a result, the correction could already be completed. Back on Friday, the MACD indicator first went down rather far below the zero level, and then formed a buy signal (circled in the illustration). Thus, novice traders could open long positions as early as Friday. Of course, I was a little embarrassed by the fact that the trading week was ending, but the risk was justified. When transferring deals to a new week, it is better to simply always set the Stop Loss level so that you do not get losses when opening with a gap on Monday. Also, beginners could work out a buy signal from January 20, which could receive about 45 points of profit. Recall that all this time the pound / dollar pair is in an upward trend after fixing above the downward channel. We’ve also plotted an uptrend line that further illustrates the current trend, with the UK retail sales report for December released on Friday. Taking into account fuel sales, the growth was 0.3% m / m, excluding 0.4% m / m. The forecasts were almost three times higher. Also published were business activity indices, which were also worse than predicted values, while the service sector in January fell down from 45.2 to 38.8. As we said in the article on the euro / dollar, there is nothing surprising about this. In the European Union, business activity in the service sector dropped to 45 with one lockdown in winter, in the UK there were two lockdowns, so the service sector suffered even more. Taking into account the fact that the macroeconomic reports from the USA were quite good, the pound sterling fell absolutely logically on Friday. The only hope remains that this was a market reaction, not just a coincidence. No major macroeconomic report will be released Monday in America or the UK. No other events are scheduled either. Therefore, most likely, we will have a boring Monday. At the same time, traders will again seek to bring the pair back to the 1.3745 high. As we have noted long ago, traders do not need a “foundation” now to actively trade or continue buying sterling. Recall that from a fundamental point of view, the pound continues to grow absolutely groundless. As of January 25, the following scenarios are possible: 1) Buy orders remain relevant, since the price left the descending channel, and an ascending trend line was formed. Novice traders should already be long with the target at 1.3766. If the MACD indicator turns down on Monday, then close the purchases and wait for a new signal. Either the MACD indicator turns up, or the price rebounds from the trend line. 2) Selling is not recommended to consider now, as we have an upward trend. Thus, it is recommended for beginners to open short positions not earlier than the price fixing below the trend line. Targets in this case can be located around 1.3540 and 1.3500 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 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 – 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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