empty
30.01.2025 07:49 AM
How to Trade the GBP/USD Pair on January 30? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades

1H Chart of GBP/USD

This image is no longer relevant

The GBP/USD pair traded very sluggishly on Wednesday, with markets feeling cautious about any unexpected statements from Jerome Powell. However, Powell essentially repeated his previous comments. The main difference was that the Federal Reserve now describes inflation as "moderately elevated," which further diminishes the likelihood of easing monetary policy by more than 0.5% in 2025. We believe the results from the Fed meeting should be viewed as "moderately hawkish," but market participants have largely overlooked this. The pound sterling continues to trade well above the ascending trend line, indicating no immediate reason to expect a decline. However, it's important to note that the euro and the pound are closely correlated, and the euro has consolidated below its trend line. This situation presents two possibilities: either the pound will break the trend line due to a decline, or the euro's breakout from its trend line will be deemed false. With several fundamental and macroeconomic events occurring today, market movements throughout the day may help clarify the situation.

5M Chart of GBP/USD

This image is no longer relevant

On the 5-minute time frame on Wednesday, the trading pair generated two sell signals near the level of 1.2445. The first rebound occurred during the European trading session, while the second took place during Powell's press conference. There was little value in acting on the second signal, as the price could move sharply in either direction. The first signal, however, proved to be quite successful, with the price nearly reaching the nearest target level of 1.2387.

Trading Strategy for Thursday:

In the hourly time frame, the GBP/USD pair continues to exhibit a short-term upward trend, which we consider to be a correction. In the medium term, we fully anticipate a decline in the pound with a target of 1.1800, as we believe this is the only logical outcome. We are now waiting for the moment when the downward movement resumes, and the trend line will help us determine the conclusion of the current correction.

On Thursday, the GBP/USD pair may continue its downward trend since it has not surpassed the 1.2502-1.2508 area. However, much will depend on the outcome of the ECB meeting today.

On the 5-minute time frame, trading can currently occur at the following levels: 1.2010, 1.2052, 1.2089-1.2107, 1.2164-1.2170, 1.2241-1.2270, 1.2301, 1.2372-1.2387, 1.2445, 1.2502-1.2508, 1.2547, 1.2633, 1.2680-1.2685, 1.2723, and 1.2791-1.2798. There are no significant events scheduled in the UK on Thursday, while the US will release its GDP report for the fourth quarter. Additionally, we would like to remind you that the ECB meeting may also have an impact on the British pound.

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 speeches and reports, which are consistently featured in the news calendar, can significantly influence the movement of a currency pair. Therefore, during their release, it is advisable to trade with caution or consider exiting the market to avoid potential sharp price reversals against the prior trend.

Beginners in the Forex market should understand that not every transaction will be profitable. Developing a clear trading strategy and practicing effective money management are crucial for achieving long-term success in trading.

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

How to Trade the GBP/USD Pair on February 19? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of GBP/USD On Tuesday, the GBP/USD pair remained stagnant for the second consecutive day. Market volatility is currently at a minimum, preventing the pound

Paolo Greco 06:47 2025-02-19 UTC+2

How to Trade the EUR/USD Pair on February 19? 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 minimal volatility and a downward bias. There were no significant macroeconomic releases throughout

Paolo Greco 06:47 2025-02-19 UTC+2

Trading Recommendations and Analysis for GBP/USD on February 19: The British Pound is Also "On a Break"

On Tuesday, the GBP/USD currency pair mirrored the behavior of its more dominant counterpart. For the second consecutive day, we observed a completely sideways movement. On Monday, the price attempted

Paolo Greco 02:57 2025-02-19 UTC+2

Trading Recommendations and Analysis for EUR/USD on February 19: Two Days of Total Flat Movement

On Tuesday, the EUR/USD currency pair displayed little willingness to engage in trading, as intraday volatility remained minimal and there was effectively no significant movement. For the second consecutive

Paolo Greco 02:56 2025-02-19 UTC+2

GBP/USD: Trading Plan for the U.S. Session on February 18th (Review of Morning Trades)

In my morning forecast, I focused on the 1.2627 level as a key point for market entry decisions. Looking at the 5-minute chart, the pair moved higher but failed

Miroslaw Bawulski 13:00 2025-02-18 UTC+2

EUR/USD: Trading Plan for the U.S. Session on February 18th (Review of Morning Trades). Euro Continues to Trade Without Direction

In my morning forecast, I highlighted the level of 1.0450 as a key point for making market entry decisions. Looking at the 5-minute chart, the price declined towards 1.0485

Miroslaw Bawulski 12:25 2025-02-18 UTC+2

How to Trade the GBP/USD Pair on February 18? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades 1H Chart of GBP/USD Unlike the EUR/USD pair, the GBP/USD attempted to maintain its upward movement during the U.S. trading session on Monday. However, the bulls'

Paolo Greco 07:06 2025-02-18 UTC+2

How to Trade the EUR/USD Pair on February 18? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades 1H Chart of EUR/USD The EUR/USD currency pair experienced a slight downward retracement on Monday after five consecutive days of growth. Despite this, volatility remained extremely

Paolo Greco 07:06 2025-02-18 UTC+2

Trading Recommendations and Analysis for GBP/USD on February 18: The Pound Sterling Continues Its Rally

The GBP/USD currency pair continued its upward movement on Monday. For most of the day, the price remained stable, but by the evening, the market unexpectedly began

Paolo Greco 02:48 2025-02-18 UTC+2

Trading Recommendations and Analysis for EUR/USD on February 18: A Quiet Monday

The EUR/USD currency pair demonstrated little interest in trading throughout Monday, with minimal volatility and virtually no price movement. Consequently, there is nothing new to add to previous articles

Paolo Greco 02:48 2025-02-18 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.