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23.01.201902:24 Forex Analysis & Reviews: GBP/USD. January 22. Results of the day. The pound is growing again, despite the failure of the Brexit

Long-term review
This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

4-hour timeframe

Exchange Rates 23.01.2019 analysis

The amplitude of the last 5 days (high-low): 246p - 72p - 169p - 136p - 80p.

Average amplitude for the last 5 days: 140p (147p).

The British pound sterling on the second trading day of the week, January 22, completed the correction, rebounding from the critical Kijun-sen line. Thus, despite the complete confusion with the whole Brexit procedure, the pound sterling continues to rise in price (!!!). Today or tomorrow, the pair can update the local high, which confirms the preservation of the uptrend. The growth of the British currency today was due to positive macroeconomic statistics from the UK. The unemployment rate fell in November to 4%, the average wage level including premiums rose by 3.4% with a lower forecast, and the number of applications for unemployment benefits exceeded the forecast only slightly. In general, there were grounds for increased demand for the pound. It remains only a mystery as to what keeps the pound from new falls in connection with all the events of the new year in the UK. Perhaps the "Shutdown" in the United States? But the euro currency does not rise in price with the same "Shutdown". It seems that in general, the growth of the pound is still a little groundless, but quite accurate and well predicted from a technical point of view. Thus, for this pair, until there are new important messages from the British Parliament, the technical factor is also the main one. MACD indicator has turned up, which signals a completion of the correction.

Trading recommendations:

The GBP/USD currency pair resumed its upward movement. Thus, buy orders with targets at levels of 1.3024 and 1.3076 are now recommended. A turn of the MACD indicator downwards will serve as a signal to the manual reduction of longs.

Sell orders are recommended to be considered not earlier than traders overcoming the critical line and turning the MACD indicator down. Only in this case will it be possible to trade in a fall in small lots with the first goal of 1.2801.

In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.

Explanation of illustration:

Ichimoku Indicator:

Tenkan-sen-red line.

Kijun-sen – blue line.

Senkou span a – light brown dotted line.

Senkou span B – light purple dotted line.

Chikou span – green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD:

Red line and histogram with white bars in the indicator window.

Paolo Greco
Analytical expert of InstaForex
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