empty
13.01.2025 12:34 AM
How to Trade the GBP/USD Pair on January 13? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades

1H Chart of GBP/USD

This image is no longer relevant

On Friday, the GBP/USD pair continued its downward trend, which is not surprising given that the pound sterling had been falling throughout the week, even on days without any significant local catalysts. The release of highly positive U.S. labor market and unemployment reports on Friday further strengthened the dollar.

While the euro managed to recover slightly after a nearly 100-pip drop, the pound continued to decline until the market closed for the weekend. We have repeatedly highlighted the pound's vulnerability, which could lead to challenges in the future. We also warned that the market has just begun to factor in the Bank of England's monetary policy easing. As we anticipated for 2024, the pound is now falling daily. Consequently, the target of 1.1800, which we have been discussing for at least six months, appears much more achievable than it did a few months ago.

5M Chart of GBP/USD

This image is no longer relevant

On the 5-minute timeframe, a couple of solid trading signals emerged on Friday, but executing them proved to be challenging. During the European session, a "calm" signal appeared near the 1.2270 level. By the start of the U.S. session, the pound had risen to 1.2316, where traders could take profits. However, this was followed by a sharp decline following the release of U.S. labor market and unemployment reports. Reacting to this drop or to the signal near 1.2316 was extremely difficult. Nevertheless, it is likely that traders did not end the day empty-handed.

Trading Strategy for Monday:

In the hourly timeframe, the GBP/USD pair has moved out of its flat range at the start of the year and has resumed its primary trend. The pound has been losing value almost every day. In the medium term, we fully anticipate a decline in the pound toward the 1.1800 level, as we believe this is the most logical outcome. Therefore, we expect further declines, but, as always, trading decisions should be based on technical signals.

On Monday, the GBP/USD pair may take a brief pause; however, another decline would not be surprising either.

On the 5-minute timeframe, the following levels are relevant for trading: 1.2089–1.2107, 1.2164–1.2170, 1.2235, 1.2270, 1.2316, 1.2372–1.2387, 1.2445, 1.2502–1.2508, 1.2547, 1.2633, 1.2680–1.2685, 1.2723, 1.2791–1.2798, and 1.2848–1.2860. No significant or even minor events are scheduled in the U.S. or the UK on Monday. However, data released on Friday has already provided enough clarity for the market to determine its approach to the GBP/USD pair.

Core Trading System Rules:

  1. Signal Strength: The shorter the time it takes for a signal to form (a rebound or breakout), the stronger the signal.
  2. False Signals: If two or more trades near a level result in false signals, subsequent signals from that level should be ignored.
  3. Flat Markets: In flat conditions, pairs may generate many false signals or none at all. It's better to stop trading at the first signs of a flat market.
  4. Trading Hours: Open trades between the start of the European session and the middle of the US session, then manually close all trades.
  5. MACD Signals: On the hourly timeframe, trade MACD signals only during periods of good volatility and a clear trend confirmed by trendlines or trend channels.
  6. Close Levels: If two levels are too close (5–20 pips apart), treat them as a support or resistance zone.
  7. Stop Loss: Set a Stop Loss to breakeven after the price moves 20 pips in the desired direction.

Key Chart Elements:

Support and Resistance Levels: These are target levels for opening or closing positions and can also serve as points for placing Take Profit orders.

Red Lines: Channels or trendlines indicating the current trend and the preferred direction for trading.

MACD Indicator (14,22,3): A histogram and signal line used as a supplementary source of trading signals.

Important Events and Reports: Found in the economic calendar, these can heavily influence price movements. Exercise caution or exit the market during their release to avoid sharp reversals.

Forex trading beginners should remember that not every trade will be profitable. Developing a clear strategy and practicing proper money management are essential for long-term trading success.

Paolo Greco,
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

GBP/USD: Trading Plan for the U.S. Session on January 22nd (Review of Morning Trades)

In my morning forecast, I highlighted the 1.2322 level and planned to make market entry decisions around it. Let's review the 5-minute chart and analyze what happened. The decline

Miroslaw Bawulski 14:25 2025-01-22 UTC+2

EUR/USD: Trading Plan for the U.S. Session on January 22nd (Review of Morning Trades)

In my morning forecast, I highlighted the 1.0433 level and planned to make market entry decisions around it. Let's review the 5-minute chart to see what happened. The rise

Miroslaw Bawulski 14:22 2025-01-22 UTC+2

How to Trade the GBP/USD Pair on January 22? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of GBP/USD On Tuesday, the GBP/USD pair initially traded downward before reversing and moving upward. It is important to note that the British pound

Paolo Greco 06:37 2025-01-22 UTC+2

How to Trade the EUR/USD Pair on January 22? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of EUR/USD On Tuesday, the EUR/USD currency pair experienced significant movement in both directions. In the first half of the day, there

Paolo Greco 06:28 2025-01-22 UTC+2

Trading Recommendations and Analysis for GBP/USD on January 22: The Pound Faces Strong Resistance Again

The GBP/USD currency pair experienced a decline followed by a rebound on Tuesday, ending the day near the Senkou Span B line, which serves as a strong resistance level. This

Paolo Greco 02:49 2025-01-22 UTC+2

Trading Recommendations and Analysis for EUR/USD on January 22: The Dollar Is Not Ready for a New Surge

The EUR/USD currency pair experienced a decline during the first half of Tuesday followed by a rise in the latter half. While the reasons for the initial drop are clear

Paolo Greco 02:49 2025-01-22 UTC+2

GBP/USD: Trading Plan for the U.S. Session on January 21st (Review of Morning Trades)

In my morning forecast, I focused on the level of 1.2249 and planned to make trading decisions from there. Let's analyze the 5-minute chart to see what happened. A decline

Miroslaw Bawulski 14:34 2025-01-21 UTC+2

EUR/USD: Trading Plan for the U.S. Session on January 21st (Review of Morning Trades)

In my morning forecast, I focused on the level of 1.0356 and planned to make trading decisions from there. Let's look at the 5-minute chart and analyze what happened

Miroslaw Bawulski 14:26 2025-01-21 UTC+2

How to Trade the GBP/USD Pair on January 21? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades 1H Chart of GBP/USD On Monday, the GBP/USD pair demonstrated significant growth. However, let's take a closer look at the hourly timeframe—can we conclude that

Paolo Greco 06:36 2025-01-21 UTC+2

How to Trade the EUR/USD Pair on January 21? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades 1H Chart of EUR/USD On Monday, the EUR/USD currency pair exhibited a sharp and strong rise. The euro began to strengthen almost immediately after the market

Paolo Greco 06:36 2025-01-21 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.