26.01.202618:50 Forex Analysis & Reviews: GBP/USD: Tips for Beginner Traders on January 26th (U.S. Session)

Trade Review and Trading Advice for the British Pound

The test of the 1.3667 price level occurred when the MACD indicator was just beginning to move upward from the zero line, confirming a correct entry point for buying the pound. However, the trade resulted in a loss, as the pound failed to continue rising immediately and pulled back lower.

Apparently, the lack of economic data did not support the pound's advance, but the pair also avoided a deeper correction, which keeps the chances of a continued upward trend in GBP/USD alive. Next, attention will turn to U.S. durable goods orders data. This indicator, which reflects demand for capital goods, serves as an important gauge of the U.S. economy. Traders often use durable goods orders data to forecast future economic activity. An increase in orders is typically viewed as a sign of expanding production and rising employment, while a decline may signal a slowdown in economic momentum. As a result, the data release may trigger volatility in the currency market. In addition to the data, special attention should be paid to political statements by Donald Trump and his relations with Canada. Although these factors do not directly affect the pound, any sharp weakening of the U.S. dollar will be reflected in GBP/USD quotes.

As for the intraday strategy, I will mainly rely on the implementation of Scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1:

Today, I plan to buy the pound when the price reaches the 1.3682 entry level (thin green line on the chart), targeting a rise toward 1.3712 (thicker green line on the chart). Around 1.3712, I will exit long positions and open sell trades in the opposite direction, aiming for a 30–35 point move from that level. A rise in the pound today can be expected following weak economic data.Important! Before buying, make sure that the MACD indicator is above the zero line and is just beginning to rise from it.

Scenario No. 2:

I also plan to buy the pound today in the event of two consecutive tests of the 1.3658 level while the MACD indicator is in oversold territory. This would limit the pair's downward potential and lead to a bullish market reversal. Growth toward the opposite levels of 1.3682 and 1.3712 can be expected.

Sell Signal

Scenario No. 1:

Today, I plan to sell the pound after a break below the 1.3658 level (red line on the chart), which would trigger a rapid decline in the pair. The key target for sellers will be 1.3626, where I will exit short positions and immediately open buy trades in the opposite direction, aiming for a 20–25 point rebound from that level. Pressure on the pound will return today if economic data is strong.Important! Before selling, make sure that the MACD indicator is below the zero line and is just beginning to decline from it.

Scenario No. 2:

I also plan to sell the pound today in the event of two consecutive tests of the 1.3682 level while the MACD indicator is in overbought territory. This would limit the pair's upward potential and lead to a bearish market reversal. A decline toward the opposite levels of 1.3658 and 1.3626 can be expected.

Chart Explanation:

• Thin green line – entry price for buying the trading instrument
• Thick green line – projected price where Take Profit orders can be placed or profits can be manually secured, as further growth above this level is unlikely
• Thin red line – entry price for selling the trading instrument
• Thick red line – projected price where Take Profit orders can be placed or profits can be manually secured, as further decline below this level is unlikely
• MACD indicator – when entering the market, it is important to use overbought and oversold zones as guidance

Important Note for Beginner Traders:

Beginner Forex traders must be extremely cautious when making market entry decisions. Before major fundamental reports are released, it is best to stay out of the market to avoid sharp price swings. If you choose to trade during news releases, always place stop-loss orders to minimize losses. Without stop-loss orders, you can quickly lose your entire deposit—especially if you do not use proper money management and trade large position sizes.

And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on current market conditions are an inherently losing strategy for intraday traders.