16.01.202223:25 Forex Analysis & Reviews: How to trade GBP/USD on January 17? Simple tips for beginners

Analysis of previous deals:

30M chart of the GBP/USD pair

The GBP/USD pair also fell most of the day on Friday. And just like in the case of the euro/dollar pair, it did so regardless of macroeconomic statistics. There was other data besides US reports and for the pound/dollar pair. Reports on GDP and industrial production were published in the UK. Maybe they did not have the same weight as the US reports, but what difference does it make if traders ignored them anyway? The British currency did not start falling immediately, like the European currency, but it did start it in the end anyway. And by the end of the trading day, it turned out to be near the ascending trend line, which it has worked out more than once in recent times. And at the current moment, we can say that it again bounced off it. That is, the upward trend is still preserved. Nevertheless, there is reason to believe that tomorrow the downward movement will resume. The pound has climbed too high.

5M chart of the GBP/USD pair

The movement of the pound/dollar pair on the 5-minute timeframe on Friday was very pleasant. The pair moved in the same direction for most of the day, but even if we take into account the reversal around the level of 1.3740 in the middle of the European session, it was as smooth and convenient as possible for novice traders. Thus, it only remained to work out all the trading signals. The pair was trading higher in the first half of the European session. British statistics provided minimal assistance to the British pound, but traders still failed to overcome the level of 1.3740 with its help. It was followed by a rebound, which was a trading signal to sell. What a very accurate signal. Therefore, it was necessary to open short positions at this moment. By the middle of the US trading session, when all US macroeconomic statistics were left behind, the pair stumbled on its way to the support area of 1.3688-1.3695 and overcame it in about an hour. Thus, it was necessary to remain in short positions, but the price did not reach the next target and towards the end of the day, it nevertheless began a correction against the main movement. However, in any case, the pair could not go above the level of 1.3688, so novice traders in any case received an impressive profit on a sell signal.

How to trade on Monday:

On the 30-minute time frame, the upward trend continues simply because the price continues to move higher. Thus, although the ascending trend line is no longer relevant, long positions remain preferable, since the price is formally located above it. On the 5-minute TF tomorrow it is recommended to trade at the levels of 1.3603, 1.3638-1.3652, 1.3688-1.3695, 1.3708, 1.3740. The price can rebound from these levels, or it can overcome them. As before, Take Profit is set at a distance of 40-50 points. On the 5M TF, you can use all the nearest levels as targets, but then you need to take profits, taking into account the strength of the movement. When passing in the right direction 20 points, we recommend setting Stop Loss to breakeven. No important report will be released in the UK tomorrow, just like in the US.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and 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 on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.