empty
17.01.2025 12:57 PM
GBP/USD: Simple Trading Tips for Beginner Traders on January 17th (U.S. Session)

Analysis and Trading Tips for the British Pound

The test of the 1.2220 price level during the first half of the day coincided with the MACD indicator already moving significantly below the zero mark, which, in my opinion, limited the pair's downward potential. For this reason, I did not sell and missed the entire downward movement. Buying on the rebound from 1.2185 did not yield significant profit, as the pound failed to deliver a strong upward correction.

Recent data showing a sharp decline in UK retail sales in December took many economists by surprise. The drop in demand in a key economic sector is linked to rising inflation and increased living costs, making consumers more cautious about their spending. These economic realities have prompted investors to revise their forecasts regarding the resilience of the UK economy in an uncertain environment. Markets reacted immediately to the news, with the pound sterling plunging against the US dollar. This situation has raised concerns among economists, who have long warned about worsening economic conditions in the UK. It is expected that this downward consumption trend could worsen further unless measures are implemented to stimulate demand and support residents.

In the second half of the day, US statistics could exacerbate the position of pound buyers. However, for this to happen, data on building permits and housing starts must exceed economists' forecasts. The industrial production report will wrap up the week and could also play a role in directing the GBP/USD pair's movement.

This image is no longer relevant

Buy Signal

Scenario #1: I plan to buy the pound today at the 1.2210 entry point (green line on the chart) with a target of 1.2256 (thicker green line on the chart). At 1.2256, I will exit the buy position and open a sell trade for a potential 30-35 point pullback. Pound appreciation today is only likely after weak US statistics.Important: Before buying, ensure that the MACD indicator is above the zero mark and just beginning its upward movement.

Scenario #2: I also plan to buy the pound today in the case of two consecutive tests of 1.2178, with the MACD indicator in oversold territory. This will limit the pair's downward potential and lead to a market reversal upward. Growth toward the opposing levels of 1.2210 and 1.2256 can then be expected.

Sell Signal

Scenario #1: I plan to sell the pound after a break below 1.2178 (red line on the chart), leading to a quick decline in the pair. The key target for sellers will be 1.2136, where I plan to exit the sell position and open a buy trade for a potential 20-25 point pullback. Sellers could show strength at any time if US data is strong.Important: Before selling, ensure that the MACD indicator is below the zero mark and just beginning its downward movement.

Scenario #2: I also plan to sell the pound today in the case of two consecutive tests of 1.2210, with the MACD indicator in overbought territory. This will limit the pair's upward potential and lead to a market reversal downward. Declines toward the opposing levels of 1.2178 and 1.2136 can then be expected.

This image is no longer relevant

Chart Overview

  • Thin green line: Entry price for buying the instrument.
  • Thick green line: Expected price where Take Profit can be set or profits can be manually locked in, as further growth above this level is unlikely.
  • Thin red line: Entry price for selling the instrument.
  • Thick red line: Expected price where Take Profit can be set or profits can be manually locked in, as further declines below this level are unlikely.
  • MACD Indicator: Key for determining overbought and oversold zones when entering the market.

Important Notes for Beginner Traders:

  • Exercise caution when making market entry decisions, particularly before the release of significant fundamental reports. Avoid trading during news events to minimize exposure to sharp price swings.
  • Always use stop-loss orders to limit losses. Without stop-loss orders, you risk losing your entire deposit, especially when trading large volumes without proper money management.
  • A clear trading plan, such as the one outlined above, is essential for successful trading. Spontaneous trading decisions based on current market conditions are typically a losing strategy for intraday traders.
Jakub Novak,
Analytical expert of InstaTrade
© 2007-2025

Recommended Stories

Why $65 for Brent Is Just the Calm Before the Storm

Brent is struggling to stay afloat, even as looming strikes on Iran and new turns in U.S. sanctions diplomacy come into view. Meanwhile, natural gas is currently in a bind

Anna Zotova 01:31 2025-05-15 UTC+2

Oil Lacks Confidence to Sustain a Rally

The oil market has come back to life: since the beginning of last week, Brent has gained more than 12%, and this momentum is driven not just by noise

Anna Zotova 00:21 2025-05-14 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on May 9th (U.S. Session)

Trade Review and Guidance on Trading the Japanese Yen The test of the 145.31 level occurred when the MACD indicator had already moved significantly below the zero mark, which limited

Jakub Novak 19:13 2025-05-09 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on May 9th (U.S. Session)

Trade Analysis and Tips for the British Pound The test of the 1.3255 level during the first half of the day occurred when the MACD indicator had already moved significantly

Jakub Novak 19:10 2025-05-09 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on May 9th (U.S. Session)

Trade Analysis and Tips for the Euro The test of the 1.1244 price level occurred when the MACD indicator had already risen significantly above the zero mark, which limited

Jakub Novak 19:08 2025-05-09 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on May 9. Review of Yesterday's Forex Trades

The test of the 144.86 level occurred when the MACD indicator had just started to move upward from the zero line, confirming a valid entry point for buying the dollar

Jakub Novak 09:44 2025-05-09 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on May 9. Review of Yesterday's Forex Trades

The test of the 1.3342 level in the second half of the day occurred when the MACD indicator had already significantly moved above the zero line, which limited the pair's

Jakub Novak 09:44 2025-05-09 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on May 9. Review of Yesterday's Forex Trades

The price test at 1.1312 in the second half of the day coincided with the MACD indicator having already moved significantly above the zero line, which limited the pair's upward

Jakub Novak 09:44 2025-05-09 UTC+2

Intraday Strategies for Beginner Traders on May 9

The euro and the pound resumed their decline immediately after confidence in the U.S. reaching trade agreements with key partners increased in the market. Following signing a trade agreement with

Miroslaw Bawulski 07:53 2025-05-09 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders – May 8th (U.S. Session)

Trade Review and Tips for Trading the Japanese Yen The price test at 143.75 in the first half of the day coincided with the MACD indicator just starting to rise

Jakub Novak 19:30 2025-05-08 UTC+2
Can't speak right now?
Ask your question in the chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.