empty
16.01.2023 08:11 AM
Analysis and trading tips for GBP/USD on January 16

Analysis of transactions in the GBP / USD pair

Pound continues to rise as more market players believe that the latest Brexit issues are going to be resolved since EU and UK representatives are set to meet again this week to continue the dialogue. If there is good news, GBP/USD will strengthen, following the trend that was formed last week. And since there are no important statistics scheduled to be released today, buyers have all chances for growth. The speech of Bank of England Governor Andrew Bailey could either strengthen or weaken the pound, so traders should pay close attention to what he will say.

In the US, citizens are celebrating Martin Luther King Day, so trading volume will be low, which may limit the further upside potential of the pair.

This image is no longer relevant

For long positions:

Buy pound when the quote reaches 1.2285 (green line on the chart) and take profit at the price of 1.2351 (thicker green line on the chart). Growth could occur as continuation of the upward trend. 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 1.2236, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2285 and 1.2351.

For short positions:

Sell pound when the quote reaches 1.2236 (red line on the chart) and take profit at the price of 1.2154. Pressure will increase if there is no support from big players at the current highs. But 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 1.2285, however, the MACD line should be in the overbought area as only by that will the market reverse to 1.2236 and 1.2154.

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
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY: Simple Trading Tips for Beginner Traders on June 2. Review of Yesterday's Forex Trades

The price test at 143.67 occurred when the MACD indicator had already moved significantly below the zero line, limiting the pair's downside potential. For this reason, I did not sell

Jakub Novak 09:01 2025-06-02 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on June 2. Review of Yesterday's Forex Trades

The price test at 1.3494 occurred when the MACD indicator moved significantly above the zero mark, limiting the pair's upside potential. For this reason, I did not buy the pound

Jakub Novak 09:01 2025-06-02 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on June 2. Review of Yesterday's Forex Trades

The price test at 1.1347 occurred when the MACD indicator had just started moving upward from the zero mark, confirming a proper entry point for buying the euro. However, after

Jakub Novak 09:01 2025-06-02 UTC+2

Intraday Strategies for Beginner Traders on June 2

The euro, pound, and other risk assets strengthened their positions against the US dollar following inflation-related US data. Significant pressure on the dollar also came from White House statements indicating

Miroslaw Bawulski 08:33 2025-06-02 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders for May 30th (U.S. Session)

Trade Analysis and Advice on Trading the Japanese Yen The designated levels were not tested in the first half of the day. We did not reach 144.17, and even

Jakub Novak 13:37 2025-05-30 UTC+2

GBPUSD: Simple Trading Tips for Beginner Traders for May 30th (U.S. Session)

Trade Analysis and Advice on Trading the British Pound The price test at 1.3461 during the first half of the day occurred when the MACD indicator had just started moving

Jakub Novak 13:35 2025-05-30 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders for May 30th (U.S. Session)

Trade Analysis and Advice on the Euro The price test at 1.1331 occurred when the MACD indicator had already moved significantly below the zero mark, limiting the pair's downward potential

Jakub Novak 13:33 2025-05-30 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on May 30. Review of Yesterday's Forex Trades

The price test at 144.88 coincided with the moment when the MACD indicator had already moved significantly downward from the zero mark, limiting the pair's downside potential. For this reason

Jakub Novak 08:55 2025-05-30 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on May 30. Review of Yesterday's Forex Trades

The price test at 1.3461 in the second half of the day coincided with the moment when the MACD indicator had already moved significantly downward from the zero line, which

Jakub Novak 08:55 2025-05-30 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on May 30. Review of Yesterday's Forex Trades

The price test at 1.1306 coincided with the MACD indicator's just-starting upward movement from the zero mark, confirming the correct entry point for buying the euro and resulting

Jakub Novak 08:55 2025-05-30 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

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 InstaForex anyway.

We are sorry for any inconvenience caused by this message.