Latest News

Analysis and trading tips for GBP/USD on January 17

Relevance up to 06:00 2022-01-18 UTC+00

Analysis of transactions in the GBP / USD pair

GBP/USD reached 1.3720 at a time when the MACD line was moving below zero. That prompted a signal to sell in the market, but did not result in a sharp decrease as expected. In the afternoon, the same situation emerged, however, the indicator had already gone far below zero, which limited the downside potential of the pair. That is why short positions were not taken by traders.

Pound rose early Friday because GDP data and industrial production from the UK exceeded expectations. Then, by afternoon, there was a decline in GDP/USD as dollar demand grew despite weak reports on US industrial production and retail trade. Apparently, Fed members made it clear that they are ready to act more aggressively in terms of monetary policy.

There is no news from UK today, so pound has every chance of returning to the highs it hit last week. But trading volume will become low during the US session as it is the celebration of Martin Luther King Day in the US. Most likely, the bears will attempt to push through Friday’s lows, so it is best to take short positions in the pair.

For long positions:

Buy pound when the quote reaches 1.3689 (green line on the chart) and take profit at the price of 1.3721 (thicker green line on the chart). But before doing so, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.3662, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3689 and 1.3721.

For short positions:

Sell pound when the quote reaches 1.3662 (red line on the chart) and take profit at the price of 1.3632. Pressure will return if there is no bullish activity this Monday morning.

Before selling, make sure that the MACD line is below zero, or is starting to move down from it. Pound can also be sold at 1.3689, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3662 and 1.3632.

What’s on the chart:

The thin green line is the key level at which you can place long positions in the GBP/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the GBP/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line – when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Benefit from analysts’ recommendations right now

Top up trading account

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published.

More in:Latest News