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Forex Traiding

Analytics and trading signals for novice traders. How to trade the GBP / USD currency pair on January 20th? Opening plan and

DATE OF PUBLICATION: 2021-01-20 08: 09: 48 Hourly chart of the GBP / USD pair. The GBP / USD currency pair continued its upward movement during Wednesday night trading. A little earlier, the quotes of the pair were fixed above the descending channel, so the downtrend was once again canceled, and the upward one was formed. Therefore, at this time, novice traders are again recommended to consider trading up. Beginners could open buy orders already upon a signal to overcome the descending channel (circled in red in the illustration). Moreover, from the moment of its formation, the upward movement was not interrupted for a second, and the MACD indicator made only miserable attempts to turn down. Thus, all this time it was possible to maintain long positions. At this point, the profit would be around 40 pips. Moreover, the pound / dollar pair seems to be aiming again at the 1.3700 level, which had already been worked out three times earlier. Therefore, in some way, now you can even try to move away from the usual scheme of opening / closing positions and put Take Profit at the level of 1.3700. Of course, such a transaction must be constantly monitored in order to avoid unnecessary losses. But the probability of a hike to 1.3700 is really very high. The calendar of macroeconomic events for Wednesday is also not empty. Today in the UK will be published a report on inflation, and it will be published early in the morning, in the coming hours. The UK CPI is expected to accelerate from 0.3% y / y to 0.5% – 0.6% y / y. If the forecast comes true, the pound sterling may receive additional market support. The rest of the UK reports are less significant. As we have said more than once, “foundation” and “macroeconomics” now do not have a very big impact on the market. Therefore, technical factors are more important. We recommend that novice traders closely monitor them. Moreover, between the publication of inflation and the inauguration of Joe Biden there will be about a 12-hour interval. That is, during this time nothing will affect the movement of the pair. We would also like to draw the attention of beginners to the fact that the pair cannot constantly work off and rebound from the 1.3700 level. Sooner or later, this level will be overcome. And this overcoming can signal the continuation of the upward movement. Although, from a fundamental point of view, this option is absolutely illogical and unobvious. On January 20, the following scenarios are possible: 1) Buy orders became relevant when the pair consolidated above the descending channel. Thus, novice traders can still be buying with targets at the levels of 1.3673 and 1.3700. However, in this case, you need to take precautions, since the price has already gone up about 130 points. Therefore, we set Stop Loss. It is recommended to open new buy orders on a new buy signal from MACD, which should be discharged beforehand. 2) Sells have lost their relevance, as this time the pair managed to move away from its 2.5-year highs by only 185 points. Thus, for the possibility of opening short positions, you now need to wait again for a rebound from the level of 1.3700 or another signal of the end of the upward trend. This can take several days. What is on the chart: Support and resistance price levels are the levels that are the targets when buying or selling. 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 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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