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23.01.2023 11:43 AM
Analysis and trading tips for GBP/USD on January 23

Analysis of transactions and tips for trading EUR/USD

No market signals appeared on Friday as the pair failed to reach the target levels.

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GBP/USD dipped because the UK core retail sales index and retail sales volume figures disappointed traders. However, buyers took advantage of this momentum to buy out all the fall.

There are no UK statistics scheduled to be released today so the bull market is likely to extend this week. There are also no US statistics that will affect the balance of power as the upcoming index for leading economic indicators has little to do with the forex market.

For long positions:

Buy pound when the quote reaches 1.2430 (green line on the chart) and take profit at the price of 1.2481 (thicker green line on the chart). The trend that was observed last week could continue today; however, make sure that when buying, the MACD line is above zero or is starting to rise from it. Pound can also be bought at 1.2386, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2430 and 1.2481.

For short positions:

Sell pound when the quote reaches 1.2386 (red line on the chart) and take profit at the price of 1.2338. Pressure will increase if there is no bullish activity at the new highs. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Pound can also be sold at 1.2430, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2386 and 1.2338.

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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 decision based on the current market situation is an inherently losing strategy for an intraday trader.

Jakub Novak,
Analytical expert of InstaForex
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