empty
 
 
27.01.2023 06:16 PM
Trading Signal for GBP/USD for January 27 - 30, 2023: buy above 1.2370 (21 SMA - bearish channel)

This image is no longer relevant

Early in the American session, the British pound is trading around 1.2378 above the 21 SMA and within the downtrend channel formed since January 16.

US GDP data released on Thursday fueled speculation that the Fed would maintain its hawkish stance for longer. This, in turn, could put downward pressure on the GBP/USD pair. The key will be to sell and wait for the price to consolidate below 1.2365.

We can see that the British pound is consolidating below the key level of 1.2414. If GBP/USD settles above this zone in the next few hours, we could expect it to continue rising, but to do so, the instrument will have to break the bearish channel sharply and consolidate above 1.2420.

In case the British pound falls and trades below the 21 SMA located at 1.2361, there is a strong probability that it could fall and reach the bottom of the downtrend channel around 1.2250 and could even reach 6/ 8 Murray at 1.2207 and finally reach the 200 EMA located at 1.2186.

Our trading plan for the next few hours is to buy the British pound if it consolidates above 1.2370 with targets at 1.2415 and 1.2451(7/8 Murray). In case GBP/USD consolidates below the 21 SMA on the 4-hour chart, it will be a clear signal to sell with targets at 1.2250 and 1.2207 (6/8 Murray).

Dimitrios Zappas,
Analytical expert of InstaForex
© 2007-2024
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
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback