19.01.202607:23 Forex Analysis & Reviews: How to trade the GBP/USD currency pair on January 19? Simple tips and trade review for beginners

Review of Friday's trades:

1H chart of the GBP/USD pair

The GBP/USD pair also maintained a downward trend on Friday, though it did not show a noticeable decline during the day, and on Monday night, it even showed growth. Nevertheless, the pair continues to trade below the trendline, so there are no technical grounds to expect short-term growth of the British currency. On Friday, there were no major events in the UK, but traders don't need them right now anyway. A day earlier, two quite important and fairly positive reports were published in Great Britain — industrial production and monthly GDP — which had no effect on the pound. Thus, the pound's dynamics now depend more on the euro's movement, which in turn depends on the technical picture on the daily TF.

5M chart of the GBP/USD pair

On the 5-minute TF, no trading signals were formed on Friday. Only at the market open on Monday did the price approach within an arm's reach of the 1.3319–1.3331 area, but it did not work it off. Thus, there are currently no relevant trading signals.

How to trade on Monday:

On the hourly TF, the GBP/USD pair continues forming a new downtrend, which is justified by only one factor — the euro's decline. There are no global grounds for the medium-term growth of the dollar, so we expect movement only to the north. Overall, we also expect the resumption of the global 2025 uptrend, which could bring the pair to 1.4000 within the next couple of months.

On Monday, beginner traders may consider short positions if the pair bounces off the 1.3437–1.3446 area with a target of 1.3319–1.3331. A bounce from the 1.3319–1.3331 area would allow opening long positions with a target of 1.3437–1.3446.

On the 5-minute TF, you can trade using the levels 1.3043, 1.3096–1.3107, 1.3203–1.3212, 1.3259–1.3267, 1.3319–1.3331, 1.3437–1.3446, 1.3529–1.3543, 1.3574–1.3590, 1.3643–1.3652, 1.3682, 1.3763. No interesting reports or events are scheduled for Monday in the UK or the US. The day began with a sharp 45-pip rise, but it is unlikely that this dynamic will persist during the day. Rather, today we will witness another "boring Monday."

Main rules of the trading system:

1. Signal strength is judged by the time required to form the signal (rebound or breakout). The less time required, the stronger the signal.
2. If two or more trades were opened on false signals near a level, then all subsequent signals from that level should be ignored.
3. In a flat, any pair can generate many false signals or none at all. In any case, at the first signs of a flat, it is better to stop trading.
4. Trades are opened between the start of the European session and the middle of the American session; after that, all trades must be closed manually.
5. On the hourly timeframe, MACD-based signals should be traded only when there is good volatility and a trend confirmed by a trendline or trend channel.
6. If two levels are located too close to each other (5–20 pips), they should be considered a support or resistance area.
7. After the price moves 20 pips in the correct direction, set the stop loss to breakeven.

What is shown on the charts:

Support and resistance price levels — levels that serve as targets when opening buys or sells. Take Profit can be placed near them.

Red lines — channels or trendlines that reflect the current tendency and show which direction is preferable to trade now.

MACD indicator (14,22,3) — histogram and signal line — an auxiliary indicator that can also be used as a source of signals.

Important speeches and reports (always listed in the news calendar) can strongly affect a currency pair's movement. Therefore, during their release, trading should be done with maximum caution, or positions should be closed, to avoid a sharp price reversal against the preceding move.

Beginner forex traders should remember that not every trade can be profitable. Developing a clear strategy and effective money management are the keys to long-term trading success.